| This research’s purpose is to analyze empirically about the effect of accounting estimation for predicting future cash flows which is shown on the first research model. Besides that, this research also want to analyze the effect of accounting estimation for predicting future earnings which is shown on the second research model. This research is divided into two model. in the first research model, future cash flows is used as a dependent variable and accounting estimation is used as an independent variable. In the second research model, future earnings is used as a dependent variable and accounting estimation is used as an independent variable. Variables that is used for accounting estimation are : Cash From Operation, delta Inventory, Depreciation & Amortization, delta Working Capital, Deferred Tax, and Allowance For Doubtful Accounts. This research was using double linear regression for both of the research models. This research was conduct upon non financial company that is listed in Bursa Efek Indonesia for the period of 2009-2013. The first research model was using 262 companies, while the second research model was using 350 companies. The finding of the first research model show that accounting estimation except delta Working Capital has an effect for predicting future cash flows which means that the first ,second, third, fifth, and sixth hypothesis is accepted and the forth hypothesis is rejected. The result of the second research model show that accounting estimation has an effect for predicting future earnings, which means that the seventh, eighth, ninth, tenth, eleventh, and twelfth hypothesis is accepted as well. |