21 market to book value ratios tend to be large for firms that make substantial expe 4297586
21. Market-to-bookvalue ratios tend to be large for firms that make substantial expenditures on internally developed assets, including research and development, advertising, and employee development.
22. The balance sheet perfectly describes both resources and financing (claims on those resources).
23. Applying asset and liability definitions and recognition criteria under U.S. GAAP and IFRS results in the balance sheet including all economic benefits (resources) and obligations.
24. Investors would view measurements that reflect current conditions as the most relevant for making investment decisions.
25. With the exception of internally developed software costs, U.S. GAAP requires that the firm expense both research and development expenditures as incurred.
26. Balance sheets based on U.S. GAAP and IFRS omit some items and measure others with bias, relative to measurements based on current economic conditions.
27. Conservatism emphasizes the early recognition of losses and delayed recognition of gains.
28. Both U.S. GAAP and IFRS require reporting that results in the more conservative measurement of earnings.
29. The principal objective of accounting reports as currently prepared is to present accurately the results of operations and the financial condition of the firm.
30. Acquisition cost includes all costs required to prepare an asset for its intended use.