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?
CUET UG 2022 — Accountancy Financial Statements
2022mcqmedium
Which one of the following statement is false?
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
Cash flow statement is based upon cash basis of accounting.
- B
Cash flow statement is based upon accrual basis of accounting.
- C
Increase in the amount of creditors is a source of cash in cash flow statement.
- D
Increase in the amount of debtors results in decrease in cash in cash flow statements.
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