The relationship between Current and Cash Items on Net Return on Assets in Tehran stock exchange

ABSTRACT:The purpose of this research is to examine the impact of The relationship between Current and Cash Items on Net Return on Assets in Tehran stock exchange.Previous studies have provided evidences that,higher accrual profitability obligation in comparison with accrual profitability in each period is associated with lower profitability performance in future periods. These findings were interpreted as an increase in operating accruals adversely affect operating profit in future periods, thus decreasing the profitability of coming period. 143 companies listed in Tehran Stock Exchange in the period 1382-1388 is reviewed.Inthis study, we demonstrated that, accrual profitability has no adverse effect on the operating profitability of the next period and lower stability of current accrual profitability to cash profitability in relation with operating profit of the next period lies beneath the stronger correlation between current accrual profitability and cash profitability with net operating assets.