The FASB concluded in Concepts Statement No. 1 that investors and creditors are interested in an enterprise’s future cash flows. However, the Board further stated that the primary focus of financial reporting is information about earnings. If an investor or creditor is interested in future cash flows, why isn’t the focus on an examination of a firm’s past cash flows? What are the limitations associated with using cash flows to measure the performance of an enterprise? Conversely, what are the risks to an investor or creditor of focusing solely on accrual-based earnings figures?