From misinterpreting financial statements to making uninformed investment decisions, these critical oversights could be ...

Over a span of what is now quite a few years, the two of us have been privileged to be academic accountants. Part of the job description requires us to think a lot about ideas that practitioners don’t ...

While net profit is a key profitability indicator, it doesn't reflect liquidity. Many profitable companies face negative cash ...

Ever since we uncovered and articulated the paradigm that we call Quality Financial Reporting, we have been committed to advocating a new attitude among managers. We have asserted that they will soon ...

Cash flow and earnings are two different accounting concepts, featuring the time difference between cash movements and business transactions. A cash flow may not be reported as earnings unless it ...

In order to determine income using generally accepted accounting principles, you take the revenue that a company recognizes for a specific period and subtract the cost of the goods or services that ...

Organizations should consider using a cash-flow method of accounting, recording only income and expenses that are received and paid and setting aside “any transactions that do not involve cash, such ...

When accounting and economics collide … watch out! A case in point deals with the use of interest rate swaps by bank asset/liability managers. Interest rate swaps are primarily used to transform ...

(Session 11): Furnish, as a separate exhibit of your starting balance sheet and projected income statements for the first six months to one year. (Session 11): Provide a separate exhibit of your one ...

Big Tech companies are using finance leases to fund data-center buildouts, circumventing massive up-front cash outflows.

Broadcast cash flow is a calculation used for accounting in the radio, television and cable industry. Broadcast cash flow is revenue minus operating expenses, focusing on the operating performance of ...

In the entertainment industry, there’s a term known as “Hollywood accounting.” It is the practice of manipulating how profitable (or unprofitable) a movie, show, or record album is through creative ...