I have seen this question 1000 times, but I still got it wrong. Capitalization of expenses will result in higher D/E That’s right. But why not higher net profit margin?
Leases result in lower NI during the early years when capitalized. Got me too.
craneview Wrote: ------------------------------------------------------- > I have seen this question 1000 times, but I still > got it wrong. > > Capitalization of expenses will result in higher > D/E > > That’s right. But why not higher net profit > margin? becauses expenses is replaced by dep ?
And interest cost.
Old Level I ghosts: capitalization, LIFO reserve