ACCOUNT DISTRIBUTION Definition

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ACCOUNT DISTRIBUTION is the process by which debits and credits are identified to the correct accounts.

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CAPITALIZATION is the statement of capital within the firm - either in the form of money, common stock, long-term debt, or in some combination of all three. It is possible to have too much capital (in which case the firm is overcapitalized) or too little capital (in which case the firm is undercapitalized).

NORMALIZED EARNINGS is earnings that have been adjusted in order to take into account the effect of cycles in the economy.

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