财务会计是对企业或公司当前财务状况的清晰描述。除了目前的财务状况，还借助财务会计对公司未来的前景进行了预测。现在在财务会计过程中，在评估公司股票的未来表现时，存在着哪些财务因素能够更好的预测公司股票未来表现的问题。为了理解未来现金流总额，人们使用了不同的估值模型，而这种预测几乎总是使用过去的会计数字。在这些预测中，一个重要的问题是，过去对未来收益或现金流的现金流预测，是否优于利用权责发生制进行的预测。本研究的目的是基于essay代写-现金流和权责发生制的持续性，以及它们是否可以用来预测未来的收益，来分析收益的组成部分，如现金流和权责发生制。比较评估是为了了解现金流和权责发生制如何有助于预测未来收益。
To assess the estimated persistence of cash flows and accruals by critical discussion of existing research work findings.
To determine whether earnings components like cash flow and accruals are better at predicting performance compared to other financial elements and also which of the two is comparatively better when assessed against one another.
To do a complete assessment using US sample data from Compustat for a time period of 10 years.
Research Significance
The research findings will be useful in the context of informing financial analysts. Financial analysis will improve heavily when there is detailed cash flow information. The significance of cash flow accounting and accrual based practices have to be understood based on persistence and prediction capabilities in order to inform analysts. A benchmark study is needed to show evidence on why policy makers have to formulate better line of reporting with respect to cash flows. Furthermore, where there are choices of earnings component to be used in prediction, the analysts must have an idea of what to choose based on the context. It is also important to understand how accruals and cash flows need to be linked in order to assess earning quality.
Literature Review
Cash Flow and Accrual Accounting
Accrual is an earning component that could be useful for predicting future cash flows. Accrued expenses are incurred on the balance sheet date. However, they are recorded as current liabilities because they have not been paid out. The main focus of accrual accounting is hence to record such expenses that are not yet paid. This is different from the cash accounting form as in the cash accounting form income is usually recorded as and when the payment is received. While cash and accrual are both accepted methods, accrual is the one that is mandated as required under the GAAP. It would be difficult to actually determine an exact way in which one accounting method might be better than another because the manner in which the income to company and expenses incurred are recognized could be different (Zhou, 2016; Kormendi, & Lipe, 1987)
Earning components and their effects on predicting future financial performance of firms have been researched based on their persistence. The main aim was to analyse the extent to which cash flow and accruals are significant predictors and to understand the differences when using them. To that extent, the research also covered literature backdrop on the earnings components.
The assessment for accruals and cash flow was conducted with ten-year data from 30 companies that was collected from the Computstat database. It was established that future earning assessments can indeed be predicted with the accrual and cash flow earnings of past or current years. The research finding was also supported by evidence in existing research which also emphasized on the point that better disclosures and accounting practices could improve the efficiency of prediction. The assessment was conducted as a comparative analysis, however was not able to clearly establish which of the two -accruals or cash flows would help with better prediction. This is a limitation of the research. Future extension of the research work can consider persistence concerns with cash flow and accruals to check where one might work better than another. However, this would be based on context, firm, their accountability practices, and compliance to disclosures.
新西兰论文代写Advanced Thesis网站平台是一家论文代写信誉高的留学教育机构，其中有24小时专业客服为留学们提供随时在线咨询服务，还有一些论文代写、paper代写、essay代写、研究生论文代写、assignment代写等论文服务，新西兰论文代写Advanced Thesis 会以专业认真的教学态度来帮助留学生们完成学业目标，从而顺利拿到专属自己的学位证书！而且以上提供的论文范文，未经授权任何人不得私自转发，如有发现将依法追究其法律责任！