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Which of the following is true of accounting for research and development cost?     Responses Accounting for research and development costs is same under U.S. GAAP and IFRS. Accounting for research and development costs is same under U.S. GAAP and IFRS. The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings. The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings. U.S.GAAP adheres to the matching principle by expensing research and development costs. U.S.GAAP adheres to the matching principle by expensing research and development costs. Under U.S. GAAP accounting for research and development costs violates the conservative principle. Under U.S. GAAP accounting for research and development costs violates the conservative principle.

Which of the following is true of accounting for research and development cost?     Responses Accounting for research and development costs is same under U.S. GAAP and IFRS. Accounting for research and development costs is same under U.S. GAAP and IFRS. The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings. The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings. U.S.GAAP adheres to the matching principle by expensing research and development costs. U.S.GAAP adheres to the matching principle by expensing research and development costs. Under U.S. GAAP accounting for research and development costs violates the conservative principle. Under U.S. GAAP accounting for research and development costs violates the conservative principle.

FINANCIAL ACCOUNTING
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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Which of the following is true of accounting for research and development cost?
 
 
Responses
  • Accounting for research and development costs is same under U.S. GAAP and IFRS.
    Accounting for research and development costs is same under U.S. GAAP and IFRS.
  • The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
    The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
  • U.S.GAAP adheres to the matching principle by expensing research and development costs.
    U.S.GAAP adheres to the matching principle by expensing research and development costs.
  • Under U.S. GAAP accounting for research and development costs violates the conservative principle.
    Under U.S. GAAP accounting for research and development costs violates the conservative principle. 
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