STREET DOGS: The rise and fall of Zilch’s earnings

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Cooking the books is common practice among today’s companies

In the long run, investment returns are all about earnings and dividends. Dividends of course are real. On the other hand, given the remarkably wide parameters of Generally Accepted Accounting Principles , earnings have become whatever management wants them to be. When earnings can’t be managed to meet management’s projections, just change the terminology.

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