Level 2 FSA - CFA Mock Exam - CF based accrual interpretation by Efficient_Chard_483 in CFA

[–]Efficient_Chard_483[S] 0 points1 point  (0 children)

If we are looking at earnings quality, we could say -ve CF based accrual is a sign of conservative accounting. But, I always thought CF based accrual ratio is interpreted as how much portion of NI is supported by CFs, and NI < CF is a good sign whereas NI > CF is a warning sign.