financial statement

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Selling Your Business & the Value of Accounting Records

M&A Current Environment 2020 and 2021 have been record years for mergers and acquisitions (M&A) despite COVID19.  Liquidity in the marketplace, abundance of retiring baby boomers, and low interest rates continue to fuel the M&A market.   This seller’s market has allowed multiples for selling businesses to remain at high levels.  Investment bankers representing sellers are

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Pro-Forma Financial Statements

See Also: Proforma Earnings Balance Sheet Cash Flow Statement Free Cash Flow Variance Analysis Pro-Forma Financial Statements Definition In accounting, pro-forma financial statements are hypothetical financial reports that show either forecasts of or alterations to actual financial statements. Pro-forma financial statements show the financial statements of a company in a hypothetical scenario that has not

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Full Disclosure Principle

See also: Accounting Principles 5, 6, and 7 Accrual Based Accounting GAAP Rules Generally Accepted Accounting Principles (GAAP) What is GAAP? Full Disclosure Principle Definition As one of the principles in Generally Accepted Accounting Principles (GAAP), the Full Disclosure Principle definition requires that all situations, circumstances, and events that are relevant to financial statement users

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Calculate EBITDA

See Also: EBITDA Definition EBITDA Valuation Operating Income (EBIT) Operating Profit Margin Ratio Analysis Net Income Adjusted EBITDA Calculate EBITDA Calculate EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) in three easy steps. For an EBITDA meaning and use in valuation, click the above links for a better description. EBITDA Calculation Formula Step 1) The

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Accounting Controls

See Also: Accounting Concepts Accounting Principles Accrual Based Accounting Accounting Income vs. Economic Income Audit Scope Accounting Controls Definition Accounting controls, defined as the company policies which result in valid accounting, are essential for every single company. They can come in many forms: policies for transactions, processing of statements, filing paperwork like invoices, communication between

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10 Q

See Also: Balance Sheet Definition Income Statement Cash Flow Statement Pro-Forma Financial Statements Statement of Financial Accounting Standards (SFAS) Fiscal Period 10K 10 Q Definition What does 10 Q mean? The 10 Q definition is a quarterly cumulative financial statement required by the Securities and Exchange Commission (SEC) under the Securities and Exchange Act of

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Why Do Most Financial Projections Fail?

Do you know the number one reason most financial projections fail? It is because sales are over estimated! Why Do Most Financial Projections Fail? This time of year we are busy working with clients preparing projections for the next year. What we find is it is very difficult for clients to do an accurate financial

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