What is a benefit of a companys reporting a pro forma earnings number? What is a danger

Question:

What is a benefit of a company’s reporting a pro forma earnings number? What is a danger with pro forma earnings numbers?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

See More Books

Question Posted: Jan 28, 2012 07:02 AM

See More Questions

What is a benefit segment?
What is a benefit of having a financial buyer versus a strategic buyer in an M&A transaction??
What is the difference between pro forma incremental earnings and pro forma free cash flow?
You have three light bulbs; bulb A has a resistance of 240 , bulb B has a resistance of 192 , and bulb C has a resistance of 144 . Each of these bulbs is used for the same amount of time in a setup...
A study of the properties of metal plate-connected trusses used for roof support ("Modeling Joints Made with Light-Gauge Metal Connector Plates," Forest Products J., 1979: 39-44) yielded the...
Medicare and Medicaid were inaugurated under the administration of _____. a) Franklin D. Roosevelt b) Harry S. Truman c) Dwight D. Eisenhower d) John F. Kennedy e) Lyndon B. Johnson
Suppose that an August Call option to buy a share for $\$ 600$ costs $\$60.5$ and is held until August. (a) Under what circumstances will the holder of the option make a profit? (b) Under what...
The weighted average cost of capital for a firm (assuming all three Modigliani and Miller assumptions apply) is 15 percent. What is the current cost of equity capital for the firm if its cost of debt...
Image transcription text 1. [#751] Exploding 1 point A mass breaks suddenly into two parts, masses M and m, with speeds I and v respectively and carrying a total kinetic energy K. If ML = R = 4.2,...
Kohler Clothiers manufactures women's business suits. The company uses a standard cost accounting system. In March 2012, 15,700 suits were made. The following standard and actual cost data applied to...
What is a pro forma earnings number?
With respect to pro forma earnings numbers, what recommendation made by the Financial Executives International (FEI) and the National Investor Relations Institute did the SEC endorse?
Attendance at large exhibition shows in Denver averages about 8000 people per day, with standard deviation of about 500. Assume that the daily attendance figures follow a normal distribution. (a)...
Why will system enhancement occur?
"Quick fixes" can be a very effective way to make simple changes to a system with a minimum amount of time and cost. On the other hand, what is the danger or downside of quick fixes?
List the different data - transmission media mentioned in this chapter and give typical applications for each.
What are the desirable features that an operating system should have to provide for predictability in time - critical applications?
What determines the priority of a task in an embedded application with fixed priorities?
Households decide to save $10,000 more. By how much must the government increase G if it wants to maintain the same level of national income? C is going down by $10,000.
How can you tell from the vertex form y = a(x - h) 2 + k whether a quadratic function has no real zeros?
A company claims that 60% of the households in a given community use its product. A competitor surveys the community, using a random sample of 40 households, and finds only 15 households out of the...
Parsons Inc. wishes to change from the completed-contract to the percentage-of-completion method for financial reporting purposes. The auditor indicates that a change would be permitted only if it is...
Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable to determine previous LIFO inventory amounts.
Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable to determine previous LIFO inventory amounts.
MUN Faculty of Business Administration | Managing Social Enterprises: Marketing Ultimate project goal Write a letter that appeals to me (or your audience), and convinces them to take a key action, or...
A franchisee has yearly gross sales of $200,000, net profit of $30,000, gross profit of $15,000, and brand royalties of 5 percent. What amount is the franchisee likely to pay the franchisor per annum?
Some remedies and preventive measures have been put forth to slow or forestall currency crises, such as capital controls and intermediate regimes (i.e., fixed or floating exchange rates). Discuss...

What is a benefit of a companys reporting a pro forma earnings number? What is a danger

Question:

Step by Step Answer:

A trustworthy manager can reveal even better information about the underlying ...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions