Which of the Following Is True

Multiple Choice

Which of the following is true?

A) Cash flow data is superior to earnings under the accrual basis in predicting long-term performance of an entity.
B) Earnings under the accrual basis is superior to cash flow data in predicting short-term performance of an entity.
C) Earnings under the accrual basis is superior to cash flow data in predicting long-term performance of an entity.
D) Cash flow data is superior to earnings under the accrual basis in predicting both short- and long-term performance of an entity.