Multiple choice

Which of the following is NOT an example of accruals basis of accounting?

  1. Depreciation

  2. Cash Flow Statement

  3. Prepaid Expense

  4. Provision for Warranty Claims

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash flow statements aim to present the cash flow effects of transactions that occur during an accounting period and are therefore not based on the accruals principle.

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