What is a better way to measure financial performance, Financial Accounting

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What is a better way to measure financial performance

Problem

A health care organization has just been created. During its first year of operations, the organization reported an accounting loss of $500,000. Cash flow during the same period was a positive $500,000. How can the organization claim a loss when cash flow was so high? What is a better way to measure financial performance?

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Financial Accounting: What is a better way to measure financial performance

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