The accrual basis of accounting creates the need for a statement of cash flows. Explain.

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David · Accepted Answer

The accrual basis of accounting creates the need for a statement of cash flows. 
Explain. 
The indirect method starts with the accrual basis adjusted net income and not 
with the cash basis income because net income includes all the expenses and 
revenues whether paid in cash or not.

The accrual basis of accounting creates the need for a statement of cash flows. Explain.

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