If taken without accompanying changes in cash flow, changes in a company's accounting earnings do not impact the overall value of the firm.

Name: If taken without accompanying changes in cash flow, changes in a company's accounting earnings do not impact the overall value of the firm.
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Question

Quizplus · Accepted Answer

Changes in accounting earnings without corresponding cash flow changes do not affect a firm's intrinsic value, as value is driven by cash flows, not accounting figures.

If Taken Without Accompanying Changes in Cash Flow, Changes in a Company's