Which cash flow ratio reflects the extent to which accrual accounting adjustments and assumptions have been included in net income?

Question

Quizplus · Accepted Answer

Cash flow-to-net income reflects the extent to which accrual accounting adjustments and assumptions have been included in net income. This ratio is important because net income can be manipulated through accrual accounting, while cash flow provides a more objective measure of a company's financial health.

Which Cash Flow Ratio Reflects the Extent to Which Accrual