archived_user
New member
- Jun 18, 2026
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With regards to the accruals formula,
accrualsCF = NI − CFO − CFI
Why is it that CFF is not apart of this formula? The way I think about the formula is as follows:
accrualsCF = NI − CFO − CFI
Why is it that CFF is not apart of this formula? The way I think about the formula is as follows:
- makes sense that if NI is super high and CFO is super low or negative, that accruals would be really high (logic)
- why exactly would negative CFI over the year increase accruals?
- and why is CFF not a factor here?