Earnings Quality of Financial Reports: FORMULAS

[bartolia]

Hi,
Which formulas do we need to learn in this section ? For example, do we need to learn the Beneish and bankruptcy formulas by heart or is it just expected to understand how to interpret the output of the models ?
Thks
Alex

 

[S2000magician]

bartolia wrote:For example, do we need to learn the Beneish and bankruptcy formulas by heart or is it just expected to understand how to interpret the output of the models?

I, personally, wouldn’t bother to memorize those formulae.