Question: Q2. How do managers know whether the forecast financial statements of a typical manufacturing firm, are accurate? (10 marks) Explain what does capitalization of expenses

Q2.

  1. How do managers know whether the forecast financial statements of a typical manufacturing firm, are accurate? (10 marks)
  2. Explain what does capitalization of expenses mean? Give an example of how it affects the net profit of a company. (10 marks)

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