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financeakan's Articles
December 11, 2004 by financeakan
Operating income is defined to be revenues less operating expenses and should be before financial expenses (interest expenses, for example) and capital expenses (which create benefits over multiple periods). Specify at least two items that currently affect operating income that fail this definitional test and explain what you would do to adjust for their effects. The two items that most directly contradict this definition of operating income are operating leases and R&D expenses, both of w...