- how do you adjust a company’s statements for the bad payment account in current assets? how would it be asked on an exam question? i need examples 2) can someone explain how statements are adjusted for operating to capitalized leases (including on the IS). edit: 3) which CFAI sample exam is the best one to take? i’d like to hear from anyone who took it but especially repeaters like me
If they reduce there bad payments, that means they increase A/R. Just reverse it. Operating to capitalized —> NI initially is depressed because of the sum of interest and depreciation cost, but eventually you will have higher NI. Edit: I didn’t see adjusted. I think you just remove lease expense and then you have a depreciation charge and interest charge.
the capitalized lease adjustment has a few components through out the IS
Yea I didn’t read your post right. I am not too sure on that then, but I edited what I initially wrote.
thanks nib can someone answer #3?