The statement of cash flows is argued by researchers to be a more reliable statement than accrual statements.

Question

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The statement of cash flows is considered to be a more reliable statement than accrual statements because it shows the actual cash flow movements in and out of the organization during a given period, which can help in identifying potential cash flow problems and assessing liquidity. Accrual-based financial statements, on the other hand, are prepared on the basis of accrual accounting principles, which may involve assumptions and estimates and do not provide a true picture of cash flows.

The Statement of Cash Flows Is Argued by Researchers to Be