Practicing Success
Match the following-
Choose the correct answer from the options given below: |
(A)-(IV), (B)-(I), (C)-(II), (D)-(II) (A)-(II), (B)-(IV), (C)-(I), (D)-(III) (A)-(III), (B)-(II), (C)-(I), (D)-(IV) (A)-(II), (B)-(I), (C)-(IV), (D)-(III) |
(A)-(II), (B)-(IV), (C)-(I), (D)-(III) |
* The Accounting basis for Cash Flow Statement is- The accounting basis for the cash flow statement is the cash basis of accounting. The cash flow statement reports the cash inflows and outflows of a business during a period of time. It is prepared using the cash basis of accounting, which records revenue when cash is received and expenses when cash is paid. The cash basis of accounting is different from the accrual basis of accounting, which is used to prepare the balance sheet and income statement. Under the accrual basis of accounting, revenue is recognized when it is earned, even if cash has not been received, and expenses are recognized when they are incurred, even if cash has not been paid. *It can not be considered as cash and cash equivalents- Cash and cash equivalents are short-term, highly liquid investments that can be easily converted into cash without any significant loss in value. Investments in shares, on the other hand, are long-term investments that are subject to market risk. Additionally, shares are not as easily converted into cash as cash and cash equivalents. Investors may need to sell their shares through a broker, which can take time. Investment in shares is a investing activity. |