Question
BB is an accounting manager for a waste company. They are having a bad year financially are expected to have a net loss. A new
BB is an accounting manager for a waste company. They are having a bad year financially are expected to have a net loss. A new leader is hired and suggests that the company write off 25% of its trucks. BB states the trucks are good for 2 to 3 years. The leader states it doesn't matter as now one will buy them anyway and writing them off will help next years financials look better. Please answer the following
How will the write-off affect the following year's return on assets ratio?
How will the write-off affect the asset and income growth percentages?
Explain how the components of the fraud triangle relate to this case?
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