Business valuation is supposed to be a mathematical calculation of revenue streams, assets and liabilities, simple accounting stuff.

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There are a number of different ways of computing capital or equity, but for now we can use the simple accounting definition.

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The following table provides a simple example accounting for future earnings.

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But the answer to the question, while not widely known beyond elite accounting circles is simple enough.

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The purpose of accounting standards is simple: to help investors keep track of what managers are doing with their money.

ECONOMIST: A hill of beans

While it is not yet possible to determine how large such profits will actually be -- the terms of some of the transactions now under negotiation with the USSR make the accounting procedures applied to leveraged buyouts look simple -- in terms of the overall national trade picture, they are likely to remain a drop in the bucket.

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"We're not overly worried about these accounting concerns, since Autobytel has a relatively simple business model, " says Ragas.

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