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NEW QUESTION: 1
A. Option A
B. Option B
C. Option D
D. Option C
Answer: D
Explanation:
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NEW QUESTION: 2
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A. 2.4Ghz + 2.4Ghz
B. 2.4Ghz + 5Ghz
C. 5Ghz + 5Ghz
D. 2.4Ghz + 5Ghz + 2.4Ghz
Answer: B,C
NEW QUESTION: 3
Which of the following is/are true about expenses?
I. R&D expenses must always be capitalized.
II. Software expenses may sometimes be capitalized.
III. In extractive industries like oil and gas, companies have a choice of either expensing or capitalizing extractive costs.
A. I, II & III
B. II & III
C. III only
D. I only
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Difficulties in measuring the current value of assets being generated by R&D prevent a reliable application of the accrual principles, which require allocation of expenses in proportion to the current benefits generated. Hence, US GAAP takes the easiest solution and dictates that all R&D costs must be expensed immediately (unless they generate tangible or intangible assets which have alternative future uses which are measurable). On the other hand, software development costs which are similar to R&D costs are capitalized after feasibility of the product is determined. In extractive industries, firms are allowed to use either the full-cost method, in which all search and development costs can be capitalized, or the successful-efforts method, where all such costs are expensed unless they result in revenue-generating assets, in which case, they are capitalized.
NEW QUESTION: 4
A. 0
B. 1
C. 2
D. 3
Answer: B
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