Firm's Cash Flow Generation: Enterprise Earnings Basis

Enterprise Earnings Basis

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Question

The best indication of a firm's present and continuing ability to generate favorable cash flows is information about enterprise earnings based on which of the following basis?

Answers

Explanations

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A. B. C. D. E.

Explanation

Information about an enterprise's earnings based on accrual accounting generally provides a better indication of the firm's present and continuing ability to generate favorable cash flows than would information limited to the financial effects of cash receipts and payments.