1 The amount of revenue shown on the income statement may di

1. The amount of revenue shown on the income statement may differ from the amount of cash inflow from operating activities shown on the statement of cash flows. This statement is

a) true.

b) false.

Solution

In income statement amount of revenue is shown on accured basis i.e cash revenue or credit revenue both are included in revenue of income statement.

But amount of cash inflow from operating activities shown only cash sales not credit sales.

so above statement is true