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- 2011-7-11
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- 2013-8-21
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Capitalizing - leverage ratio
Can some one please explain the effects of capitalizing as opposed to expensing.
How does this affect the leverage ratio?
Leverage = assets/equity
When capitalizing does your asset increase by the same amount as your equity?
(also when expensing, you reduce your net income... so does this reduce your equity by the same amount?) |
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