Why does Non-GAAP earnings are controversial?

Q: How are restrictions of retained earnings reported?

A:

Q: How does retained earnings increase? What are the two ways that retained earnings decreases?

A: Retained earnings is a reserve kept aside from the surplus income earned to use it for re investment…

Q: What are the factors contributing to the trend toward fair value accounting?

A: Fair value accounting refers to the valuation and accounting of the asset or liabilities based on…

Q: Under what circumstances might a salary or bonus be more appropriate than interest on capital…

A: Partnership: The form of business entity which is formed by an agreement, owned and managed mutually…

Q: Define the term Temporary earnings.

A: Earnings: The term earnings refer to the amount of money the company had earned during a particular…

Q: 3. How do earnings management practices affect the quality of earnings?

A: Earnings quality:   The term earnings quality considers whether the earnings of the company are…

Q: porate earnings and profits (E&P) is correct?

A: E&P refers to the accumulated earnings and profits of a company. The E&P of a company…

Q: Differentiate between book value and market value. Explain why GAAPallows smoothing earnings…

A: The net value of a company's assets, as represented on its balance sheet, is roughly equal to the…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: Discuss the components of operating and nonoperating income and theirrelationship to earnings…

A: Meaning of Operating Income Operating Income is also known as Earnings before interest and taxes. It…

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: How did you decide whether the situation is a profit or a loss?

A: A profit and loss (P&L) statement is a financial statement that details the revenues,…

Q: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: Comprehensive income does not affect net income or retained earnings. True False

A: Comprehensive income means any change in the net assets of the business during the particular period…

Q: Define Non-GAAP Earnings.

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: What are the unofficial earning measures of revenue?

A: Unofficial earning measures of revenue are often called as non-GAAP (Generally Accepted Accounting…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: Why do changes in retained earnings occur?

A: Introduction: Retained earnings are nothing but the accumulated profits that the corporation keeps…

Q: Why must a cost be assigned to retained earnings?

A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…

Q: What are three limitations of the income statement thatoften lead to misconceptions?

A:

Q: 2. Explain the distinction between permanent and temporary earnings as it relates to the concept of…

A: Earnings quality refers to the ability of reported earnings to estimate a company future earnings.…

Q: What is the impact of deferred annuities in consideration to business matter?

A: The legal contract between any entity and an insurance company is a deferred annuity contract. The…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: Define each of the following terms: g. Repatriation of earnings; political risk

A: Repatriation means the conversion to a single domestic currency of any foreign currency.…

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: What is meant by earnings persistence?

A: Earning persistence is one of the attributes of accounting earnings. Basically, it means the…

Q: What items are not presented on the income statement?

A: Income statement:The financial statement which reports revenues and expenses from business…

Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

A: Other comprehensive income means those items of revenues and expenses that are not part of Profit…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

Q: How does earnings management affect earnings quality?

A: Earnings of a company is referred as net income or bottom line item of a company. It is a very…

Q: Why can we not invest net income? Explain with an example?

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Why is earnings per share called “the bottom line”? What is EBIT, or operatingincome?

A: Earnings per share is the company’s net revenue/income that can be distributed among its…

Q: How do you calculate the breakeven point in revenues?

A: Break-even point is the level at which profit is zero; that is, at the Break-even level, expenses…

Q: Explain what is meant by the term earnings quality.

A: The term earnings refer to the amount of money the company had earned during a particular period of…

Q: 2. How do non-GAAP earnings relate to the concept of earnings quality?

A:

Q: Why do companies sometimes report non-GAAPresults?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines that must be followed in…

Q: profits and losses equally

A: Correct Answer :- B Peter  P170,000. And  john P90000

Q: Which of the following would not affect a company's net income?

A: Note as more than one question is posted i am providing you answer for question 1. Net income is…

Q: How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in…

A: Unrealized Gains and Losses refer to the rise or decline in the paper value of the company's various…

Q: Explain the types Earnings?

A: Earning is the amount of income that an individual or organization receives during a year.

Q: what are the examples of Items that can  be adjusted directly against equity rather than including…

A: Profit or loss account is a revenue account, whereas the equity account is a capital account. Equity…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: what is not a factor in producing earning forecasts?

A:

Q: How can earnings management affect the quality of ­earnings?

A: The concept of quality earning shows the amount of earning which is not earned by any default or…

Q: wrong about the use of financial statement analysis?

A: There are internal and external stakeholders of a company who are interested in determining the…

Q: What are the impotance of Earning per Share and Diluted Earnings per Share in making economic…

A: Diluted EPS= Net Income−Preferred DividendsWASO+CDS​ where: EPS=Earnings per share WASO=Weighted…

Q: What is Ending retained earnings?

A: Retained earnings:   Retained earnings are the portion of earnings kept by the business for the…