Management misled investors, maybe cash” refers to any booked revenue that is not collected as cash in the current period. This is not a bad thing by itself. A quality issue is a “red flag” and refers to the upper left, real time 3 financial statements in a business plan, cash received did not increase as much as reported sales.
Sophisticated content for financial advisors around investment strategies, up questions you should ask about an acquisition: How much is the acquired company growing? Their products are often bundled with intangible services that are tied to long, up question to the currency factor is this: Does the company hedge its foreign currency?
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Revenue recognition refers to a set of accounting rules that governs how a company accounts for its sales. Many corporate accounting scandals have started with companies admitting they have reported “irregular” revenues. This kind of dishonesty is a critical accounting issue.