A cash flow statement deals only with actual cash receipts and payments, hence it is prepared on a cash basis and not on the accrual basis. Statement (b) is therefore false. The other three statements are correct.
Which one of the following statement is false?
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Cash flow statement is based upon cash basis of accounting.
Cash flow statement is based upon accrual basis of accounting.
Increase in the amount of creditors is a source of cash in cash flow statement.
Increase in the amount of debtors results in decrease in cash in cash flow statements.
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Work through every CUET UG Financial Statements PYQ, year by year.