Explain why cash flow measures of performance are less useful than accrual-based measures.
Answer to relevant QuestionsWhat factors give rise to the superiority of accrual accounting over cash accounting? Explain.Accounting income has elements of both permanent income and economic income. Explain this statement.Describe the three basic valuation approaches for estimating fair values. Relate the valuation approaches to hierarchy of inputs.What is meant by earnings quality? Why do users assess earnings quality? What major factors determine earnings quality?Describe alternative information sources beyond statutory financial reports that are available to investors
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