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Which of the Following Statements Is TRUE

Question 96

Multiple Choice

Which of the following statements is TRUE?


A) Financial professionals prefer the accrual-based approach as it focuses more attention on cash inflows and outflows
B) Financial managers do not need to make any adjustments to financial statements for decision-making
C) Financial managers must convert cash-based financial statements to accrual-based ones before they can begin analyzing a firm
D) Financial professionals prefer the cash-based approach as it focuses more attention on cash inflows and outflows

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