Post Utme Caleb University 2019 Accounting Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2019 Accounting Objective / Multiple Choice
Question 7 POST_UTME_CALEB_UNIVERSITY • 2019 • ACCOUNTING • objective

A government agency is required to prepare a cash flow statement in accordance with the accrual basis of accounting. However, the agency's management has decided to prepare the cash flow statement on a cash basis. What is the effect of this change on the agency's financial statements?

Answer Options

A. The agency's net income will increase.
Correct Answer B. The agency's net income will decrease.
C. The agency's cash flow will increase.
D. The agency's cash flow will decrease.
Correct Answer
B
Correct Option:
The agency's net income will decrease.

About This Question

This is Post Utme Caleb University 2019 Accounting Question 7. It is one of the objective questions from the 2019 Post Utme Caleb University Accounting examination.

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