Multiple Choice Which of the following statements is false regarding RESEARCH and DEVELOPMENT (R&D) COSTS? RESEARCH activities are undertaken to discover new knowledge that will be useful in developing new product or in significantly improving an existing product. DEVELOPMENT activities involve the application of research findings to develop a new product prior to the start of commercial production. No intangible asset arising from research shall be recognized; expenditure on research shall be recognized as an expense when it is incurred.

Multiple Choice Which of the following statements is false regarding RESEARCH and DEVELOPMENT (R&D) COSTS? RESEARCH activities are undertaken to discover new knowledge that will be useful in developing new product or in significantly improving an existing product. DEVELOPMENT activities involve the application of research findings to develop a new product prior to the start of commercial production. No intangible asset arising from research shall be recognized; expenditure on research shall be recognized as an expense when it is incurred.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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q24 Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s carrying amount in the books of the entity b. Sell the asset after if the fair value is greater than the recoverable amount c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.
15 - Which of the following statements about depreciation is false? a) Depreciation is a type of expense that does not require a cash outflow. B) As a result of use, wear, tear, depreciation or obsolescence must be experienced in the tangible asset. NS) The asset to be depreciated should be among the assets of the enterprise. D) Proportional depreciation method can be applied for all tangible fixed assets. TO) For a property, plant and equipment to be depreciated, its economic life must be more than one year.
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In the case study of Company XYZ's challenges in accounting for goodwill and intangible assets impairment, which factor poses a risk to the value of intangible assets such as patents and software? A) Technological advancements B) Annual amortization C) Lack of impairment testing D) Economic stability
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