Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Cash Flow Statement in based upon:
Options:
Cash basis of accounting
Accrual basis of accounting
Mix of 1 and 2
None of the above
Correct Answer:
Cash basis of accounting
Explanation:
The Cash Flow Statement is primarily based on the cash basis of accounting, focusing on the actual cash inflows and outflows during a specific period.