What is Quality of Earnings?

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A Quality of Earnings report drills into the details of the business’ financial statements and cash flows. Businesses are no different – strong financial statements can often mask risks or material inaccuracies under the surface. Changes in accounting principles.

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Balance Sheet vs. Profit and Loss Statement (P&L)

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The balance sheet and the profit and loss (P&L) statement are two of the three financial statements companies issue regularly. The third financial statement is called the cash-flow statement. This is an internal report that stays in the accounting department.