Which Statement Is Not Correct

question 46

Multiple Choice

Which statement is not correct?

• A)Cash accounting is straightforward.
• B)Cash accounting requires the same financial statements as accrual accounting.
• C)The cash flow statement reports performance under cash accounting.
• D)The income statement is the same as the cash flow statement under cash accounting.

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Definitions:

Economic Scenarios

Hypothetical projections used in financial planning and economic modelling to understand the potential impacts of various macroeconomic conditions or policy changes.

Probability

A measure of the likelihood of a specific outcome or event occurring, often expressed as a percentage or a ratio.

Systematic Risk

Also known as market risk, it refers to the risk inherent to the entire market or market segment and cannot be eliminated through diversification.

Cost of Borrowing

The total amount of interest and other charges an individual or entity pays when taking out a loan.