Mistress Expense on Income Statement - WTF?

by a professional from Northern Arizona University

1 year ago

Paying for a Mistress on the income statement is that a Red Flag?

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27 comments

investor from Stanford University - Graduate School of Business

It is common enough that when I've put in a new CFO into a company, it is one of the things they look for. Although never had it specifically called out as a line item on the income statement.

1 year ago | like reply | 0 likes

admin from Stanford University - Graduate School of Business

A few searchers I've talked to have discovered it after the acquisition. Presumably, the owner might be too embarrassed to mention non-employee employee on the books. The searchers usually consider it a happy discover because it means they have more wiggle room on hiring or other expenses than they anticipated in their models.

1 year ago | like reply | 0 likes

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