Question: What is the difference between mark-to-market accounting and cash flow accounting in financial reporting, and which one is preferred? Mark-to-market accounting (MTM) and cash flow

What is the difference between mark-to-market accounting and cash flow accounting in financial reporting, and which one is preferred?

Mark-to-market accounting (MTM) and cash flow accounting are two distinct methods of reporting financial transactions. MTM reporting requires assets and liabilities to be recorded at fair value, while cash flow reporting records transactions based on actual cash inflows and outflows.

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