CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Expense recognition examples of conservatism in GAAP include the following EXCEPT FOR ______.
A. Expensing research costs
B. Expensing litigation costs when it becomes probable that a cost will be incurred
C. Expensing extracting costs during the period of revenue recognition in the oil and gas industry (matching principal)
Explanation: Extraction costs are expensed during the period between discovery and the time of sale.

User Contributed Comments 1

User Comment
tricorp Gotta be careful with this type of question as all answers appear similar
You need to log in first to add your comment.