Abnormal accruals

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The difference between accrued income and cash flows (adjusted for typical accruals that occur during the application of accounting standards). Abnormal accruals are sometimes measured as a test of earnings quality.

Abnormal accruals relate to both future annual returns and future announcement returns, even after controlling for Price to Operating Cash Flow ratio (POCF).


What Are Accruals? How Accrual Accounting Works - Investopedia