In a newspaper article of 6 August 2018 entitled FAANGs have lost their bite, by Libby Koch
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In a newspaper article of 6 August 2018 entitled ‘FAANGs have lost their bite’, by Libby Koch and David Koch (in The Advertiser), it was stated that profit is an accounting number that managers can manipulate to suit management’s own interests. By contrast, the statement of cash flows is harder to mask with ‘financial trickery’ and therefore is more credible. What is the basis of this view, and do you agree with it?
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In general terms this statement is correct While we would hope that the majority of managers and their accountants would prepare financial statements ...View the full answer
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