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Cash Flow Statements

The primary difference between cash flow statement and all other external financial statements is that it is:

A) Not an accrual based statement and all others are accrual based.
B) Prepared for managements use but not for external reporting purposes.
C) A cause of the basic accounting equation to be out of balance.
D) Prepared before the end of the year.

Solution Preview

The answer is A.
<br>The cash flow statement is not an accrual based statement since it focuses on the cash position of the company (you can verify the cash ...

Solution Summary

This question solves a multiple choice question regarding cash flow statements.