Question $22$

$1$ pts

What is the differences between the cash flow statement and the income statement?

The income statement is based on accrual accounting causing GAAP differences in the timing and recording of actual cash

Companies like to confuse readers and add additional financial statements to be misleading

The income statement is cash based accounting, yet the cash flow statement reconciles the accrual method of accounting so that the two statements are linked

Cash flows and net income are the same