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Accounting for inventories & fixed asset

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Can a company manipulate the bottom line with the accounting for inventories and fixed assets? How so?

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The solution determines if a company can manipulate the bottom line with the accounting for inventories and fixed assets.

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Sure, companies can manipulate the bottom lines with regards to inventories and fixed assets. Before we go into the specific methods that companies usually use, I would like to first point out that companies want to increase the expenses on the book, thus decrease the net income value and pay less taxes as ...

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