SAGE #8-Simple Advice Governing Equities
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  Name Date        
Quality of Earnings Checklist
or Earnings Management		0 - 4
  1. Allowance for Doubtful Accounts amount
  2. Inconsistent Inventory Cost Flow
  3. Base LIFO layer reduction
  4. Loss on write-down of Inventory
  5. Change in Pension accounting assumptions
  6. Changing Depreciation assumptions
  7. Changes in Deferred Taxes accounts
  8. R & D, Repairs, or Advertising Cuts
  9. Increase in Nonoperating activity
10. Increase in off-balance sheet activity