22) When using the discounted flows to equity valuation model, the market value of common shares depends upon investors': A) future expectations about the future economic prospects of cash flows before payments to debtholders and preferred shareholders. B) current expectations about the future economic prospects of cash flows after payments to debtholders and preferred shareholders. C) future expectations about the current economic prospects of cash flows to both debtholders and preferred shareholders. D) current expectations about the current economic prospects of cash flows to both debtholders and preferred shareholders. 23) Cash flow assessment plays a central role in analyzing: A) the credit risk of a company. B) management's effectiveness. C) the future earnings potential of a company. D) the firm's investment potential. 24) By using accruals and deferrals, accrual accounting: flows. A) produces a cash flow number that reflects only cash earnings. B) produces information about current cash receipts and payments. C) enables management to estimate future free cash flows. D) produces an earnings number that depicts the effects of economic events on cash 25) Research indicates that stock returns correlate better with: A) accrual earnings than realized operating cash flows. B) cash basis earnings than realized operating cash flows. C) realized operating cash flows than accrual earnings. D) future operating cash flows than accrual earnings