Required: 1. Define each of the following disclosure costs associated with financial accounting information, and provide an example of each cost: a. Information collection, processing, dissemination costs. b. Competitive disadvantage costs. c. Litigation costs. d. Political costs. 2. Identify at least one other potential disclosure cost.

Which of the following accounting principles or conventions is contradictory to the GAAP requirement to expense R&D costs immediately?   matching principle   historical cost principle   comparability   conservatism

1-Explain the meanings of (1) cost, (2) expense, (3) loss as used for financial reporting in conformity with GAAP. In your explanation, discuss the distinguishing characteristics of the terms and their similarities and interrelationships.

An analyst must be familiar with the determination of income. Income reported for a business entity depends on proper recognition of revenues and expenses. In certain cases, costs are recog- nized as expenses at the time of product sale; in other situations, guidelines are applied in capi- talizing costs and recognizing them as expenses in future periods. Required: a. Under what circumstances is it appropriate to capitalize a cost as an asset instead of expensing it?  Explain. b. Certain expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the rationale for recognizing expenses on such a basis.

3. Listed are the possible answers

What qualitative characteristic defines, the underlying influence in the preparation of financial statements is the weighing of costs and benefits regarding the presentation of information A) Materiality Cost constraints Faithful representation D Going concern

Explain Prorations, Escrow Costs, and Payments to Third Parties?

Contrast a revenue/expense approach and an asset/liability approach to  accounting standard setting.

Is the matching of costs and revenue a basic accounting principle?

Answer the following questions in multiple-choice answers:   1. The book value of the equipment currently owned by a firm is an example of a(n): a. future cost. b. differential cost. c. comparative cost. d. opportunity cost. e. sunk cost.   2. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely.   3. Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in nature. b. quantitative in nature. c. predictive in nature. d. sensitive in nature. e. uncertain in nature.   4. An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized…