1) The sale is itself the sole criterion for recognizing revenue.
2) Asset turnover is defined as sales divided by total assets.
3) The accounting standards codification was created by the IASB to harmonize U.S.
and international GAAP.
4) For U. S. GAAP, software development costs are capitalized as intangible assets
once the technological feasibility of the product is established.
5) When variable costing is used, fixed production costs are included as part of
inventory cost.
6) The lower of cost or market method is based on the assumption that input costs and
selling prices generally move together.
7) Accelerating cash collection on notes receivable by assigning or selling them is
referred to as discounting.
8) Investing activities include the cash effects of selling stocks and bonds to raise
capital to purchase fixed assets.
9) Current GAAP requires that all convertible bonds be considered as if converted and
included in the denominator of diluted earnings per share.
10) While the earnings process is the result of many separate activities, it is generally
acknowledged that there is usually one critical event or key stage considered to be
absolutely essential to the ultimate increase in net asset value of the firm.