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IFRS GAAP Requirement That a Statement of Cash Flows Be

Question 6

Multiple Choice

IFRS GAAP requirement that a statement of cash flows be reported (in one of two standard formats) by all business entities is logical because


A) Accrual accounting is no longer valid in today's fast paced economy.
B) Accrual accounting and cash accounting provide different information.
C) Cash accounting is useless in a world where most transactions involve credit.
D) The value of a business entity is best described by its cash position after liquidation.

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