Research indicates that lenders making predictions of corporate failure relied:

Question

Quizplus · Accepted Answer

Research suggests that lenders making predictions of corporate failure relied more on cash flow information than accrual information. This is because accrual accounting is subject to manipulation and can result in distorted financial statements, while cash flow information provides a more accurate picture of a company's liquidity and ability to meet its financial obligations.

Research Indicates That Lenders Making Predictions of Corporate Failure Relied