Which of the Following Statements Is TRUE

question 19

Multiple Choice

Which of the following statements is TRUE?

• A) Financial professionals prefer the accrual-based approach as it focuses more attention on cash inflows and outflows
• B) Financial managers do not need to make any adjustments to financial statements for decision-making
• C) Financial managers must convert cash-based financial statements to accrual-based ones before they can begin analyzing a firm
• D) Financial professionals prefer the cash-based approach as it focuses more attention on cash inflows and outflows

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Definitions:

Prompt Shipment

The process of quickly and efficiently sending goods to a buyer shortly after receiving the order.

Acceptance

A term used in contract law, acceptance refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Canceled

The act of formally terminating or voiding an agreement, contract, policy, or event.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that governs the sale of goods between parties in different countries.