Which of the following is true of accounting for research and development cost? ResponsesAccounting 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.

The term "GAAP" (generally accepted accounting principles) refers to the generally recognised…

Answered: Which of the following is true of…

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 6MCQ

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Question

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.