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The pattern toward wider acceptance of this yard-stick has been constructing for the reason that early 1970s. Accelerating the trend have been a number of developments-together with new monetary reporting rules on such issues as overseas currency translation, fairness earnings, interperiod income tax allocation, and lease and interest price capitalization-that put higher distance between a company’s net income and its cash circulation; the adoption of "liberal" accounting practices by some corporations; and file inflation levels. While we applaud makes an attempt to glean higher information on corporate past and future performance, we concern that operating cash flow could come to be regarded because the barometer for gauging firm efficiency. One would assume that the operating cash flow measure would have utility in predicting bankruptcy, since an impending collapse normally sends clear indicators. Corporate executives have penetrated the veil of accounting income, have discovered them typically misleading, and have turned to the "real thing," cash circulation knowledge, to guage their company’s efficiency and that of opponents.