Question: Generally accepted accounting principles do not require companies to disclose forecasts of any financial variables to external users. A friend, who is a finance major,

Generally accepted accounting principles do not require companies to disclose forecasts of any financial variables to external users. A friend, who is a finance major, is puzzled by this and asks you to explain why such relevant information is not provided to investors and creditors to help them predict future cash flows.

Required:
Explain to your friend why this information is not routinely provided to investors and creditors.

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