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Why would the process of capitalizing costs match expenses and revenues more closely yet make it harder to find cash available in a company?
Wiki User
∙ 12y ago
Because the balance sheet / income statement don't tell you much about the company's cash flows any longer (-> cash goes out, yet it's no expense (capitalised costs)) -> you require a CF statement to see where your cash comes from and where it goes.
Wiki User
∙ 12y ago
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