OBSERVE / OBSERVATION Definition

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OBSERVE / OBSERVATION is to watch and test a client action, e.g., taking inventory.

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FIXED ASSETS are those assets of a permanent nature required for the normal conduct of a business, and which will not normally be converted into cash during the ensuring fiscal period. For example, furniture, fixtures, land, and buildings are all fixed assets. However, accounts receivable and inventory are not. Sometimes called PLANT.

An indicator of a sustainable competitive advantage is if valuable assets on the books at valuation indicate that they are valued at < market price. If so, it may tell about the mindset of the firm's management looking for sustainable competitive advantages.

ADJUSTMENTS TO INCOME are all tax code allowable increases/(deductions) to income that are not already accounted for.

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