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Firms often provide supplemental disclosures that report and discuss income figures that do not necessarily equal bottom-line net income from the income statement. For example,

Firms often provide supplemental disclosures that report and discuss income figures that do not necessarily equal bottom-line net income from the income statement. For example, in Twitters initial public offering filings with the SEC, the company reported a net loss of $79.4 million, but prominently disclosed adjusted EBITDA of (positive) $21.2 million. Discuss the merits and shortcomings of this managerial practice.

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