Capitalizing vs Expenditure
In Schwesernotes stated that: "Capitalizing an expenditure will initially results in higher return on assets (ROA) and higher return on equity (ROE)". Any one can prove it for me, please?
I think Capitalizing make higher return but increase asset or equity also, therefore, I am not sure such ratios up or down relatively expensing!!! May it give more condition like ROA is more or less than 1 to be more clear???
Thank for any help! |