1.if a firm capitalized an exoense this term which of the following detected by a financial analyst

a. the firm net incorn should not change this term as capitalized assets are not recorded in the income statement but balance sheet

b. the firm net income is higher this term

c. the firm net income is lower this term as more asset are subject to depreciation/amortizton

2. if a firm has policy of revenue recognition upon shipping rather than upon delivery which of the following action is likely taken by analyst?

a. look into the peer companies and see if it is the industry common practice

b. call its clients and see if there are low shipping quality issues

c. wait and see if the firm has to restore its previous financial statement later