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What is Quality of Earnings?

CFO Share

QOE reports go beyond the balance sheet and profit and loss statement – they challenge the underlying data through rigorous testing and management interviews to assess accuracy, and risk. Sales concentrations and/or backlog risk. Analysis of inventory reserves and allowances. Transactions with related parties.

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How to create & use pro forma statements

Cube Software

Think of pro forma statements as a monetary crystal ball, a guiding financial forecast. By plugging the specific transaction into the balance sheet, treasurers can see how it would affect the rest of the company and determine whether the benefits outweigh the potential risks/drawbacks.

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