Financial professionals prefer to focus on an accounting approach that focuses on

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Financial professionals prefer to focus on current and prospective cash flows because cash is the lifeblood of any business. Understanding the timing and amount of cash inflows and outflows is critical to making informed financial decisions. While economically based accruals are also important for understanding a company's financial health, they are often more complex and require a higher level of accounting expertise. Governmental accounting methods and international accrual accounting standards may be relevant in certain contexts, but they are not typically the primary focus of financial professionals.

Financial Professionals Prefer to Focus on an Accounting Approach That