For external reporting purposes,GAAP requires companies to treat period costs as assets.

Name: For external reporting purposes,GAAP requires companies to treat period costs as assets.
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Quizplus · Accepted Answer

For external reporting purposes, GAAP requires companies to treat period costs as expenses, not assets. Period costs are expensed when they are incurred and are not directly related to the production of goods or services. Examples of period costs include salaries and rent expenses.

For External Reporting Purposes,GAAP Requires Companies to Treat Period Costs