When it comes to buffing results to please Wall Street, a wildly popular move now is to stuff discounts and shipping costs below the gross profits line, says accounting analyst Jack T. Ciesielski. They belong above it. The shuffling of expenses doesn’t affect the bottom line–often negative in any event–but it does affect the ones closer to the top of the income statement, lines that Internet investors pay a lot of attention to. The same games are being played with shipping costs. Read more…
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interesting article that drives home the point that accounting really does have a huge impact and should be understood by any good business person or investor.