[Verse 1] When a company reports their earnings each year The numbers might not be what they appear Accruals can hide what's really going on Cash flows reveal where the money's really gone Look beyond the bottom line they show Revenue recognition can ebb and flow Timing differences paint a different scene What's sustainable and what's just make-believe? [Chorus] Quality earnings tell the truth Cash flows backing revenue proof Accruals versus cash in hand Shows you where the business stands Quality earnings, that's the key Separating fantasy from reality [Verse 2] Start with net income on the sheet Then find the cash from operations beat If there's a gap that's growing wide Something fishy might be trying to hide Working capital changes tell a tale Accounts receivable might tip the scale If sales are up but cash is low Red flags are starting to show [Chorus] Quality earnings tell the truth Cash flows backing revenue proof Accruals versus cash in hand Shows you where the business stands Quality earnings, that's the key Separating fantasy from reality [Bridge] One-time gains can boost the score But they won't repeat anymore Core operations should be strong Sustainable earnings last long Warning signs to watch for close Cookie jar reserves and income smoothing shows [Verse 3] Earnings persistence is what you need Not just a quarter's lucky deed Conservative accounting wins Better than aggressive spins Management guidance tells their story But independent audit brings the glory Quality indicators never lie They help investors see through the sky [Chorus] Quality earnings tell the truth Cash flows backing revenue proof Accruals versus cash in hand Shows you where the business stands Quality earnings, that's the key Separating fantasy from reality [Outro] So when you analyze that financial report Remember quality should be your last resort Cash flows and accruals dancing together Show if earnings can weather any weather
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