C is corrent because financial statements prepared using the cash basis should not use titles such as balance sheet, income statement, statement of operations, and statement of cash flows--these terms are restricted to use for GAAP-basis financial statements.
A is incorrect because the term "statement of cash flows" ordinarily relates to GAAP-basis statements.
B is incorrect because the term "statement of operations" ordinarily relates to GAAP-basis statements.
D is incorrect because the term "income statement" ordinarily relates to GAAP-basis statements.
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