The cash-flow statement is argued by researchers to be a more reliable statement than accrual statements:

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The cash-flow statement provides a more accurate picture of a company's financial health because it shows the actual inflows and outflows of cash, whereas accrual statements are based on accounting rules and estimates. Additionally, the cash-flow statement can help identify any potential cash flow problems and enables investors to evaluate a company's ability to generate and manage cash.

The Cash-Flow Statement Is Argued by Researchers to Be a More