Proﬁt and cash ﬂows are:
A)generally the same since they reﬂect current laws and accounting standards.
B)generally the same since accounting proﬁts reﬂect when the cash ﬂow are received.
C)generally not the same since International Financial Reporting Standards (IFRS) allows for
Revenue recognition separate from the receipt of cash ﬂows.
D)generally not the same because cash inﬂows occur before revenue recognition.
E)Both c and D

Question

Quizplus · Accepted Answer

Profit and cash flows are generally not the same because IFRS allows for revenue recognition separate from the receipt of cash flows.

Proﬁt and Cash ﬂOws Are