### [Technical] Examples of Ways Companies Can Manipulate Earnings

Examples of ways companies can manipulate earnings: Answer: Switching from LIFO to FIFO or vice versa – in a rising cost environment, switching to LIFO from FIFO will show [...]

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Examples of ways companies can manipulate earnings: Answer: Switching from LIFO to FIFO or vice versa – in a rising cost environment, switching to LIFO from FIFO will show [...]

Issuance of a mezzanine bond of $100 million with a 10% PIK interest Answer: When the bond is issued, $100 million of debt will be added to liabilities of the balance sheet [...]

Question: You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted. On how many of the smaller cubes is there [...]

Suppose you’re on a game show and you’re given the choice of three doors. Behind one door is a car; behind the others, goats. The car and the goats were placed [...]

You are driving two miles on a one-mile track. You do one lap at 30 miles per hour. How fast do you need to go to average 60 miles an hour? Answer: Don’t be [...]

Sometimes you are given all the relevant information up front, and sometimes you need to ask the right questions (and perhaps be told to make logical assumptions). The [...]

Topics Two Approaches to Valuation All Valuation is Biased Simpler is Better Time is Money Discount Rate 5 Types of Cash Flows Simple Cash Flows Annuity Growing Annuity [...]

Question: You are given two jugs – one fills up to exactly 3 liters and one fills up to exactly 5 liters. How can you fill the jug with exactly 4 liters of water? [...]

Question: You are given a rope which can be fully burnt in one hour. The rope burns unevenly meaning half burnt does not necessarily indicate a half-hour mark. Using this [...]

Question: What is the square root of 100,000?; or What is the square root of 7,000,000? Answer: The interviewer is obviously not looking to get an exact answer [...]