Accrual accounting is used in financial reporting and in analysis. Additionally, analysis often focuses on cash flows in the business.
Find an example of each type of analysis using your resources. Provide a high level overview of the analysis and its use for each example? Do you think that one type of analysis is better? Why or why not?
Find a news or journal article that explains why both accrual accounting and cash flow analysis are necessary to understand a company? Briefly explain the article. What would you have added to improve the analysis?
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