There are special rules in U.S. GAAP for software companies. For all otherproduct research and development,...
There are special rules in U.S. GAAP for software companies. For all otherproduct research and development, generally accepted accounting principles in the United States require firms to
| a. |
expense all research and development costs in the period incurred |
|
| b. |
capitalize and amortize all research and development costs over a period no greater than 10 years |
|
| c. |
expense research costs and capitalize development costs to be amortized over the period they benefit |
|
| d. |
capitalize and amortize all research and development costs over a period no greater than 5 years |
|
| e. |
capitalize and amortize all research and development costs over the future expected benefit period |
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There are special rules in U.S. GAAP for software companies. For
all otherproduct research and development,...
True or False publicly traded U.S. companies are able to supplement GAAP figures with additional non-GAAP...
True or False publicly traded U.S. companies are able to supplement GAAP figures with additional non-GAAP figures they deem necessary. An accrual always occurs when revenue and expenses are recognized and cash is received. Generally accepted accounting principles (GAAP) require related revenues and expenses to be recognized when cash is exchanged. The Financial Accounting Standard Board (FASB) establishes the rules for General Accepted Account Principles (GAAP). Generally Accepted Accounting Principles (GAAP) are a set of accounting rules, standards and financial...
Based on GAAP, most software development costs are likely to be... Select one: a. allocated to...
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Which of the following is true of accounting for research and development cost? Under U.S. GAAP...
Which of the following is true of accounting for research and development cost? Under U.S. GAAP accounting for research and development costs violates the conservative principle. OR The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
Which of the following is a benefit of the convergence between US GAAP and IFRS? Group...
Which of the following is a benefit of the convergence between US GAAP and IFRS? Group of answer choices B. All companies now have a choice between different sets of financial reporting standards C. The IASB and FASB use the exact same conceptual framework to generate accounting standards D. All companies will produce financial statements in English A. Increased comparability between financial statements produced in different countries As a result of the convergence efforts since 2007: Group of answer choices...
respond to this discussion 2 parapgraph Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require...
respond to this discussion 2 parapgraph
Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require that R&D costs be treated as an expense as the R&D is incurred. In the pharmaceutical industry, this is generally over a period of many years in which no revenue from a drug is earned. When the drug is finally commercialized and revenues are earned, most of the R&D has been completed. This doesn't seem to comply with the matching principle of accounting which...
The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB) known as...
The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB) known as the generally accepted accounting principles (GAAP). This system relies on rules and regulations and thus is said to be a rules-based system. The rest of the world follows accounting standards developed by the International Accounting Standards Board (IASB) known as the international accounting financial reporting standards (IFRS). This system relies more on principles than rules. There is a movement to have one global standard,...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
1. Which of the following is a reason why lease accounting under U.S. GAAP and IFRS...
1. Which of the following is a reason why lease accounting under U.S. GAAP and IFRS were revised? It was too easy for firms to circumvent lease capitalization criteria. To enhance comparability for analyzing different companies’ financial statements. Operating leases were a popular means of off-balance sheet financing. All of these answer choices are correct. 2. A temporary difference that causes book income to be greater than or less than taxable income when it is initially recorded is a/an: Multiple...
1. Allowance for Doubtful Accounts is a contra-account that is disclosed under Current Assets of the...
1. Allowance for Doubtful Accounts is a contra-account that is disclosed under Current Assets of the Balance Sheet. т F 2. Depreciation is used to report the fair market value of an asset. T F 3. T F Selecting an inventory accounting method for book purposes generally has no effect on the amount of income tax liability incurred by a company. 4. T F Use of the percentage of net sales method for estimating the uncollectible accounts expense violates the...
During 2018, Wildhorse Company purchased a building site for its proposed research and development laboratory at...
During 2018, Wildhorse Company purchased a building site for its proposed research and development laboratory at a cost of $56,000. Construction of the building was started in 2018. The building was completed on December 31, 2019, at a cost of $380,000 and was placed in service on January 2, 2020. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value. Management...
Based on GAAP, most software development costs are likely to be... Select one: a. allocated to inventory and expensed to cost of goods sold when the software is sold b. capitalized and amortized over a 40-year period. O c. expensed as R&D costs. d. capitalized and amortized over a relatively short period, such as five years.
respond to this discussion 2 parapgraph
Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require that R&D costs be treated as an expense as the R&D is incurred. In the pharmaceutical industry, this is generally over a period of many years in which no revenue from a drug is earned. When the drug is finally commercialized and revenues are earned, most of the R&D has been completed. This doesn't seem to comply with the matching principle of accounting which...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
1. Allowance for Doubtful Accounts is a contra-account that is disclosed under Current Assets of the Balance Sheet. т F 2. Depreciation is used to report the fair market value of an asset. T F 3. T F Selecting an inventory accounting method for book purposes generally has no effect on the amount of income tax liability incurred by a company. 4. T F Use of the percentage of net sales method for estimating the uncollectible accounts expense violates the...
During 2018, Wildhorse Company purchased a building site for its proposed research and development laboratory at a cost of $56,000. Construction of the building was started in 2018. The building was completed on December 31, 2019, at a cost of $380,000 and was placed in service on January 2, 2020. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value. Management...
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