Wk 8 Case discussions

Wk 8 Case discussions - Tara Anderson Week 8 Case...

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Tara Anderson Week 8 Case Discussions I found Gold!!! Can It Go on My Balance Sheet? After the revaluation, if you asset increased it can be credited directly to equity under the heading of revaluation surplus. But the increase has to be recognized in profit or loss to the extent that it reverses a revaluation decrease with the same asset that was previously recognized. Although I am not for sure if this is the case here and from the sound of it she is wanting to cook the book which is illegal. Another way she could do it is the write up method which is not in any U.S. accounting standards. Why is My ROA Lower than Yours? From my reading on this question I am seeing that Arnold’s assets are more assets intensive and that Baker’s are fewer assets intensive. If you have a less asset intensive then you have a higher profit per dollar than someone who is more asset intensive. By being a more asset intensive company you are having to reinvest more of your money back into the company than you would if you where a less asset intensive and this is a
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This note was uploaded on 05/29/2011 for the course EC 2011 taught by Professor Johnson during the Spring '11 term at FIT.

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Wk 8 Case discussions - Tara Anderson Week 8 Case...

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