Question

Which of the following statements is true?

Select one:

a. The Balance Sheet is prepared on the accrual basis and theIncome Statement and Cash Flow Statement are prepared on the cashbasis.

b. The Balance Sheet and Income Statement are prepared on theaccrual basis and the Cash Flow Statement is prepared on the cashbasis.

c. The Income Statement is prepared on the accrual basis and theBalance Sheet and Cash Flow Statement are prepared on the cashbasis.

d. All three statements are prepared on the accrual basis.