Pakistan's best MCQs practice hub — FPSC · PPSC · CSS · NTS · Other Exams
Login

Which financial accounting statement is prepared on a strict cash basis rather than an accrual basis?

AStatement of Cash Flows
BStatement of Changes in Equity
CBalance Sheet
DIncome Statement

Explanation

* Statement of Cash Flows reports actual cash receipts and cash payments, converting accrual accounting back to cash basis.
* Income Statement and Balance Sheet strictly adhere to accrual accounting principles.
* Evaluates real liquidity and cash generation capability.

Exam Relevance
  • Topic: Financial Accounting
  • Subtopic: Cash Flow Analysis
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

No Comments

Leave a comment

Your email address will not be published. Required fields are marked *