Your friend, Maya, says that earnings can be manipulated by managers. She argues that one should always look at the cash flows by ignoring the non-cash transactions completely as cash flows cannot be manipulated and thus they will give an unbiased understanding of a company's performance.

Do you agree or disagree with her? Clearly explain your argument?

Answer rating: 100% (QA)

Your friend Mayas argument is that by looking at cash flows while completely ignoring noncash transa... View the full answer