While creditors rely heavily on cash ﬂow information, investors do not need to be concerned with cash ﬂows and can rely exclusively on earnings.

Question

Quizplus · Accepted Answer

This statement is false. Investors also consider cash flows as an important factor in their investment decisions. Understanding a company's cash flow can provide insight into its financial health and future prospects.

While Creditors Rely Heavily on Cash ﬂOw Information, Investors Do