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When Calculating Return on Net Operating Assets Analysts Sometimes Make

question 24

Essay

When calculating return on net operating assets analysts sometimes make adjustments to the net operating asset base used in the denominator or the ratio. Three possible adjustments are listed below. Explain what these adjustments are, and discuss the merits of these adjustments.
Nonoperating asset adjustment.
Intangible asset adjustment.
Accumulated depreciation adjustment


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A stage of cognitive development proposed to follow Piaget's formal operational stage, characterized by an understanding that truth may vary from situation to situation.

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