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normalized income

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The purpose of adjusting the balance sheet and income statement to an economic basis is to provide the analyst information for making comparisons. It will assist the analyst in making projections regarding future benefit streams or earnings, adjust for personal expenses deducted through the business, to adjust for non-recurring and extraordinary transactions. These are "Normalized Adjustments." Please review the short video from the NACVA on the topic. Discussion Matters: In your own words, what is the definition of normalized income? Discuss at least two normalizing adjustments and their purpose.


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