How should research and development costs be accounted for, according to a Financial Accounting Standards Board Statement?
a. Must be capitalized when incurred and then amortized over their estimated useful lives.
b. Must be expensed in the period incurred.
c. May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved.
d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.
Answer: d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.
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Which of the following is a true statement?
A. Meals are never deductible as a business expense. B. An employer can only deduct half of any meals provided to employees C. The cost of business meals must be reasonable D. A taxpayer can only deduct a meal for a client if business is discussed during the meal. E. None of these is true.
A listing agent begins giving suggestions regarding an offer amount to some prospective buyers at an open house without explaining that she is representing the sellers. Which of the following statement is not true?
a. the agent has not violated any duties because she is not performing Real Estate Services for the buyers. b. the agent is not acting in accordance with her agency status. c. the agent may not be considered an undisclosed dual agent. d. the agent could be sued by both the buyer and the sellers