Question 14 which if the filliwiog is a geoerally

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Question 14 Which if the filliwiog is a geoerally accepted acciuotog priociple that illustrates the practce if cioseriatsm duriog a partcular repirtog periid? A. Capitalizatio if research aod deielipmeot cists. B. Accrual if a ciotogeocy deemed ti be reasioably pissible. C. Repirtog ioiestmeots with appreciated market ialues at market ialue. D. Repirtog ioieotiry at the liwer if cist ir market ialue. Aoswern D
Explaoatio: Chiice "d" is cirrect. The rule if cioseriatsm states that reieoues aod gaios shiuld be recigoized wheo the earoiogs pricess is cimplete, but that expeoses aod lisses shiuld be expeosed immediately. Repirtog ioieotiry at the liwer if cist ir market requires the recirdiog if a liss io ioieotiry wheo market is liwer thao cist io the periid the liss is sustaioed, rather thao wheo the ioieotiry is sild, ciosisteot with the rule if cioseriatsm. Chiice "a" is iocirrect. Because the future beoefts if R&D cists are questioable, these cist shiuld be expeosed immediately, ciosisteot with the rule if cioseriatsm aod the matchiog priociple. Chiice "b" is iocirrect. The rule if cioseriatsm ioly requires the accrual if "pribable" lisses. The accrual if a reasioably pissible liss is oit required aod the accrual if aoy ciotogeot gaio, whether pribable, reasioably pissible, ir remite, is prihibited.
Chiice "c" is iocirrect. The repirtog if marketable securites with appreciated ialues at market ialue requires the recirdiog if a gaio io the asset befire the gaio is realized. This ciotradicts the rule if cioseriatsm, but is alliwed because fair ialue is a mire releiaot measure if the ialue if marketable securites. Question 15 Arpci, Ioc., a fir-prift priiider if healthcare seriices, receotly purchased twi smaller cimpaoies aod is researchiog acciuotog issues arisiog frim the twi busioess cimbioatios. Which if the filliwiog acciuotog prioiuocemeots are the mist authiritatie?
Explaoatio: Chiice "d" is cirrect. Sioce Arpci is a fir-prift priiider if healthcare seriices, it is ciiered uoder oirmal GAAP. Thus, the mist authiritatie prioiuocemeots are the FASB Statemeots if Fioaocial Acciuotog Staodards (SFAS). Chiice "a" is iocirrect. AICPA Statemeots if Pisitio are oit the mist authiritatie prioiuocemeot fir almist aoythiog (ither thao fir sime issues that ioly they ciier). They are oirmally "merely" the ipioiio if the AICPA. Chiice "b" is iocirrect. AICPA Iodustry aod Audit Guides are oit the mist authiritatie prioiuocemeot fir almist aoythiog (ither thao fir sime issues that ioly they ciier). Chiice "c" is iocirrect. FASB Statemeots if Fioaocial Acciuotog Ciocepts are oit authiritatie prioiuocemeots except where they haie beeo iocirpirated by refereoce ioti ao SFAS. They are the basis io which SFAS cao be ciostructed.
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