What is(are)good predictors of future cash flows?
A)net income in past year
B)net income in current year
C)past cash receipts and past cash payments
D)cash receipts and cash payments in the current year

Question

Quizplus · Accepted Answer

Cash receipts and cash payments in the current year are the best predictors of future cash flows as they provide more up-to-date information on the company's cash inflows and outflows. Net income is affected by non-cash items such as depreciation and amortization, which may not accurately reflect the company's cash position. Past cash receipts and payments are also useful, but may not fully represent the company's current operations and future cash flows.

What Is(are)good Predictors of Future Cash Flows