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1. Corp X follows a policy of expensing all asset purchases while Corp B follows a policy of capitalizing- i.e balance Sheet transactions-of all asset
1. Corp X follows a policy of expensing all asset purchases while Corp B follows a policy of capitalizing- i.e balance Sheet transactions-of all asset purchases.
Please compare the effects of the following ratios between the two companies with an explanation. Assume-all other accounts remain unchanged.
1-Asset turnover
2- Debt ratio
3- profit ratio
3-return on asset
4- Return on equity
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