Question: FORENSIC ACCOUNTING 1. Please explain how this statement is possible The general methodology to measure lost profits is first to determine a firms lost revenues

FORENSIC ACCOUNTING

1. Please explain how this statement is possible "The general methodology to measure lost profits is first to determine a firms lost revenues and subtract its avoided costs or non-continuing expenses. The method is referred to as the top-down approach to lost profits. The bottom-up approach is defined as net income or loss plus continuing expenses. Theoretically, both methods should arrive at the same result."

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!