Solved: What information can the pro-forma earnings number provide, Finance Basics

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What information can the pro-forma earnings number provide

1. What information can the pro-forma earnings number provide that the GAAP earnings number does not?

2. Give examples from Facebook of the possible differences that might exist between the two earnings numbers.

3. What are the potential advantages and disadvantages of using pro-forma earnings to assess a firm's performance?

4. How does Facebook's performance look under GAAP and pro-forma?

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Finance Basics: What information can the pro-forma earnings number provide

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