Explanation

To determine which accruals ratios have improved, we need to analyze the changes:

Balance Sheet Accruals Ratio:

• Most Recent Year: 9.8%
• Prior Year: 1.3%
• Change: Increased from 1.3% to 9.8% (worsened)

Cash Flow Accruals Ratio:

• Most Recent Year: -1.4%
• Prior Year: -6.7%
• Change: Increased from -6.7% to -1.4% (improved)

Analysis:

• A lower (more negative) cash flow accruals ratio indicates better earnings quality
• The cash flow accruals ratio improved from -6.7% to -1.4%
• The balance sheet accruals ratio worsened from 1.3% to 9.8%

Therefore, only the cash flow accruals ratio improved.