Which of the following does not accurately describe the presentation of software development costs on the statement of cash flows?
A. Reclassifying software development costs undoes the misleading effects for any firm that attempts to improve operating cash flows by lowering the technological feasibility threshold in the current period relative to prior periods.
B. The presentation of software development costs is based upon the determination of technological feasibility.
C. GAAP contains bright-line criteria for determining technological feasibility which provides an opportunity for management to distort or manipulate results.
D. Reclassifying software development costs from the investing to the operating section of the cash flow statement improves interfirm comparability.
Answer: C
You might also like to view...
Carl Jung divided behavior into two attitudes known as ________.
A. constant and inconstant. B. Type A and Type B. C. decisive and indecisive. D. introvert and extrovert.
What is a primary influence of the ethics survey instrument developed by the Veritas Institute at the University of St. Thomas--the “Self-Assessment and Improvement Process” (SAIP)?
a. the Institute for Local Government ethical standards b. a broad-based survey of upper management at Fortune 500 companies c. governmental/municipal codes of ethical conduct d. the Caux Round Table Principles for Business
Without prior introduction or arrangement, telemarketers telephone your home and business offering to sell you a variety of products. These telemarketers engage in what form of prospecting?
A) referring B) cold-calling C) networking D) direct selling E) qualifying
Hawk Company purchased $300 of supplies on account. Which of the following shows how this purchase will affect Hawk's ledger accounts? Assets=Liabilities+Stockholders' Equity CashSupplies AccountsPayable CommonStockRetainedEarningsA. 800 800 B. (800) (800)C.(800)800 D. 800 (800)
A. Option A B. Option B C. Option C D. Option D