Cash flow analysis is well accepted because it provides a more accurate picture of financial health than sales volume.

Question

Quizplus · Accepted Answer

Cash flow analysis is widely regarded as a better indicator of financial health than sales volume because it takes into account the timing of cash inflows and outflows, as well as non-cash items like depreciation and amortization. Sales volume alone does not provide a complete picture of the company's financial position.

Cash Flow Analysis Is Well Accepted Because It Provides a More