Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles?
a. To reduce the federal income tax liability
b. To aid management in cash-flow analysis
c. To match the costs of production with revenues as earned
d. To adhere to the accounting constraint of conservatism
Ans: c. To match the costs of production with revenues as earned
Business
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Which of the following items should be included in accounts receivable reported on the balance sheet?
a. Notes receivable. b. Interest receivable. c. Allowance for doubtful accounts. d. Advances to related parties and officers.
Business
Financial statements can be generated from which of the following?
a. Operative COA b. Country-specific COA c. Both operative and country-specific COAs d. Neither operative nor country-specific COAs
Business