Module 7 Slides-student

Off balance sheet financing claim if companies can

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: f-Balance Sheet Financing Claim: If companies can find a way to purchase assets and ensure that neither the assets nor the related financing appear on the balance sheet, they can report higher levels of asset turnover (ATO) and lower levels of financial leverage (FL). Prove it: Operating Liabilities Operating vs. Nonoperating Liabilities 2011 2010 Certain Accruals Certain vs. Uncertain Accruals Examples of certain accruals include: Examples of uncertain accruals include: What is the difference? Short-Te...
View Full Document

This document was uploaded on 11/25/2013.

Ask a homework question - tutors are online