Under IFRS, development costs can be capitalized if:
Explanation
IFRS distinguishes between the research phase (expense) and development phase (capitalize if criteria met).
Other questions
Which of the following is the defining characteristic of an asset on the balance sheet?
The residual interest in a firm's assets after deducting liabilities is best described as:
A balance sheet that separately reports current and non-current assets and liabilities is known as a:
Under IFRS, firms may choose a liquidity-based format over a classified balance sheet if:
Current assets are defined as assets expected to be converted into cash or used up within:
Which of the following is considered a current liability?
Working capital is calculated as:
Accounts receivable are reported on the balance sheet at:
The allowance for doubtful accounts is classified as a:
Under IFRS, inventories are reported at the lower of cost or:
Under U.S. GAAP, for companies using LIFO, market value for inventory valuation is generally equal to:
Which of the following costs is treated as a period cost rather than a product cost included in inventory?
Prepaid expenses are classified as assets because:
Unearned revenue is classified as a:
Under the cost model, Property, Plant, and Equipment (PP&E) is reported at:
Under IFRS, which model allows PP&E to be reported at fair value?
For PP&E impairment testing under IFRS, an asset is impaired if its carrying value exceeds its:
Investment property under IFRS is defined as property held to generate:
Deferred tax assets are created when:
Which of the following is an example of an identifiable intangible asset?
Goodwill is created on the balance sheet when:
Under U.S. GAAP, research and development costs are generally:
If a firm acquires a target for 15 million EUR and the fair value of the target's identifiable net assets is 12 million EUR, the goodwill reported is:
Intangible assets with indefinite lives are:
Under U.S. GAAP, debt securities held with the intent to keep until maturity are classified as:
Held-to-maturity securities are reported on the balance sheet at:
Unrealized gains and losses on trading securities are reported in:
Unrealized gains and losses on available-for-sale securities under U.S. GAAP are reported in:
Which category of financial assets under IFRS corresponds to 'Available-for-sale' under U.S. GAAP?
Financial liabilities (like bonds payable) not issued at face value are usually reported at:
Contributed capital refers to:
Treasury stock represents:
Which of the following items is included in accumulated other comprehensive income (AOCI)?
Authorized shares are defined as:
A vertical common-size balance sheet expresses each item as a percentage of:
The current ratio is calculated as:
Which ratio excludes inventory from the numerator?
Solvency ratios measure a firm's ability to:
The financial leverage ratio is calculated as:
If a firm has 200,000 in current assets and 100,000 in current liabilities, its current ratio is:
Retained earnings are:
Noncontrolling interest represents:
Deferred tax liabilities are created when:
Which statement regarding the Statement of Changes in Stockholders' Equity is correct?
A limitation of balance sheet ratio analysis is that:
If a firm has issued 100,000 shares and repurchased 10,000 as treasury stock, the number of outstanding shares is:
Which of the following is an intangible asset with an indefinite life?
Comprehensive income is defined as:
Mandatorily redeemable preferred stock is classified as: