The income statement tends to obscure cash movements because it is: A. only produced annually B.not audited C.cash-based D.accrual-based

The income statement tends to obscure cash movements because it​ is:
A. only produced annually
B.not audited
C.​cash-based
D.accrual-based

Answer

• D.accrual-based
  Explanation:
  Income statement is described as accrual-based. It fails to indicate how and where a company is generating cash it needed for its operations. Income statement shows profit and loss and is useful in showing how well a company is generating sales, managing expenses and creating profits.