Question:

What are some ways that companies can manipulate their earnings?

Answer hidden.

Answer:

There are many ways, but some examples include:

  • Changing the depreciation method to report lower depreciation this year
  • Reducing the estimate of write-offs for obsolete or damaged inventory
  • Adjusting the method and period for amortization of intangible assets in order to reduce amortization expenses
  • Changing assumptions about investment income or valuation of investment assets
  • Making liberal adjustments to currency exchange loss assumptions
  • Not including large one-time charges

Other

Accounting

Accounting

What are deferred tax assets and liabilities?

Accounting

Walk me through how $10 of Depreciation affects the three financial statements

Accounting

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Accounting

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Accounting

What are some of the major line items on the Balance Sheet?

Accounting

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Accounting

A company makes a $100 cash purchase of equipment on Dec. 31. How does this impact the three statements this year and next year?

Accounting

What is gross margin?

Accounting

How does Inventory increasing by $10 affect the three financial statements?

Accounting

If depreciation is a non-cash expense, why does it affect the cash balance on the Cash Flow Statement?

Accounting

What flows into Retained Earnings?

Accounting

Does Goodwill get amortized?

Accounting

How does a company decide when to capitalize or expense a purchase?

Accounting

What is amortization?

Accounting

What is gross profit?

Accounting

What is the difference between goodwill and intangible assets?

Accounting

Why isn't the Income Statement affected by changes in Inventory?

Accounting

What's the difference between capital leases and operating leases?

Accounting

What is goodwill?

Accounting

Walk me through the three financial statements

Accounting

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Accounting

How does $10 of Depreciation affect the three financial statements?

Accounting

What are some of the major line items on the Income Statement?

Accounting

How do you calculate Free Cash Flow?

Accounting

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Accounting

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Accounting

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Accounting

Where can you find Depreciation on the Income Statement?

Accounting

What is Goodwill Impairment?

Accounting

What is Operating Margin?

Accounting

What are some examples of non-recurring charges that would be added back to a company's EBITDA?

Accounting

What is the relationship between CapEx and Depreciation?

Accounting

How is goodwill calculated?

Accounting

Is it possible to have negative Shareholder's Equity? If so, how?