Quiz 10.40 – T/F Accounting Treatment (FASB) Understated Income?
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Accounting treatment required for research and development costs often understates net income and assets in FASB.
Accounting treatment required for research and development costs often understates net income and assets in FASB.
True or false, development costs can be capitalized but research costs are expensed.
Salaries, materials, and utilities are included in research and development costs except for depreciation on buildings. True or false?
True or false, the cost of research and development performed for others is expensed as incurred.
The capitalization of software development costs incurred AFTER technological feasibility is established is required by GAAP, true or false?
Expensing costs as incurred is required for expenses incurred after technological feasibility but before software availability for general release to customers.
Cloud computing costs are capitalized when the customer can take possession of the software and run it on their own.
Under IFRS, research and development expenses are recognized as an expense in the period they are incurred.
Financial statements under IFRS are prepared to account for a government grant by recognizing revenue for the amount of the grant. True or false?
The successful efforts accounting method permits the capitalization of exploration expenses for oil and gas within a substantial geographic area.