Sony,IncSpent $1,000,000 of Development Cost for Commercially Feasible Prototypes

question 149

Multiple Choice

Sony,Inc.spent $1,000,000 of development cost for commercially feasible prototypes.If Sony follows IFRS not GAAP,then the $1,000,000 would:

• A)be recorded as an asset.
• B)be recorded as an expense.
• C)be recorded as revenue.
• D)not be recorded.

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Definitions:

ArithmeticException

A type of exception in Java that occurs when an illegal arithmetic operation is performed, like division by zero.

Divisor Zero

Refers to the attempt of dividing a number by zero, which is undefined and causes an error in many programming environments.

Negative Value

A numerical value less than zero, representing the opposite of positive values.