How do earnings and cash are useful assets with future earnings potential? Does investors tend to use these pieces of information when making their investment decisions?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 6GI
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How do earnings and cash are useful assets with future earnings potential? Does investors tend to use these pieces of information when making their investment decisions?

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