Quality of Financial Reports

cumbia metal, hyper-grime, coptic grunge

Listen on 93

Lyrics

[Verse 1]
When companies paint their numbers bright
Conservative methods keep things tight
Aggressive tactics stretch the truth
Revenue recognition needs some proof
Watch for changes in the books they write
Accruals bloated overnight

[Chorus]
Quality detective, check the cash
Beneish M-Score spots the dash
Related parties, off-balance schemes
Warning signals break the dreams
Cash flow tells what's really real
Accruals hide what numbers steal

[Verse 2]
Eight red flags wave in the breeze
Gross margin growing with such ease
Asset quality index climbs too high
Depreciation rates that multiply
Sales growth index through the roof
Leverage growing, need more proof

[Chorus]
Quality detective, check the cash
Beneish M-Score spots the dash
Related parties, off-balance schemes
Warning signals break the dreams
Cash flow tells what's really real
Accruals hide what numbers steal

[Bridge]
Days sales outstanding stretches long
Sales general admin feels so wrong
Total accruals to assets ratio
When it's high, the warning's clear though
Cash from operations beats net income
Quality reports, that's where trust comes from

[Verse 3]
Inadequate disclosures hide the mess
Related transactions under dress
Off-balance-sheet items disappear
Making debt look crystal clear
But quality analysts dig deep
Finding secrets companies keep

[Chorus]
Quality detective, check the cash
Beneish M-Score spots the dash
Related parties, off-balance schemes
Warning signals break the dreams
Cash flow tells what's really real
Accruals hide what numbers steal

[Outro]
Conservative wins the longer game
Aggressive methods bring the shame
Quality matters more than flash
Always follow trails of cash

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