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Unformatted text preview: businesses because similar accounting methods have been applied. Conservatism : Suggests that care should be taken not to overstate assets and revenues or understate liabilities and expenses. Material Amounts Amounts that are large enough to influence a user's decision. Classified Income Statement p. 245-247 Net Sales Cost of Good Sold = Gross profit Operating Expenses = Income Tax Exp. Return on Equity, bottom 253-254 Return on Equity = Net Income / Average Stockholder Equity...
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.
- Fall '07