Which of the Following Statements Presents Financial Information NOT Based

question 104

Multiple Choice

Which of the following statements presents financial information NOT based on accrual accounting?

• A) balance sheet
• B) income statement
• C) statement of cash flows
• D) statement of retained earnings

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Definitions:

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's cash flow.

Cash Sales

Revenue received immediately in currency or by check at the time of sale.

Credit Sales

Sales made by a business where payment is delayed as per agreement, rather than requiring immediate payment in cash.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets.