Comparing a companys income statement to its statement of cash flows can reveal information about the quality of the companys reported net income because the statement of cash flows reflects cash-based accounting technique and thus relies on more estimates than the income statement. the statement of cash flows reflects accrual-based accounting technique and thus relies on fewer estimates than the income statement. the statement of cash flows reflects accrual-based accounting technique and thus relies on more estimates than the income statement. the statement of cash flows reflects cash-based accounting technique and thus relies on fewer estimates than the income statement.