A FASB discussion memorandum suggested that cash flow data are a useful supplemental disclosure for all of the following reasons except:

Question

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The FASB discussion memorandum did not suggest that cash flow data are a better predictor of future earnings than accounting income. Instead, the memorandum emphasized the importance of cash flow data in providing information about the quality of income, assessing flexibility and liquidity, and identifying the relationship between accounting income and cash flows.

A FASB Discussion Memorandum Suggested That Cash Flow Data Are