A personal income statement is prepared

Question

Quizplus · Accepted Answer

A personal income statement can be prepared either on an accrual basis or a cash basis, but it is usually based on actual cash flows. Therefore, options B and C are the best choices. Option A may not always be relevant, especially for personal income statements. Therefore, options B and C seem to be a more appropriate choice than option A. Option E, which includes all the choices, may not be entirely true as option A may not always be relevant.

A Personal Income Statement Is Prepared