Many consultants and analysts modify the numbers presented in external financial statements that comply with GAAP when implementing incentive compensation plans.The main adjustments that companies seem to make,if any,include capitalizing expenditures on
A)research and development and then amortizing the capitalized expenditures over their useful life.
B)customer development,advertising,and promotion if these expenditures will benefit future years and then amortizing the capitalized expenditures over their useful life.
C)employee training that will benefit future years and then amortizing the capitalized expenditures over their useful life.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

The main adjustments include capitalizing expenditures on research and development, customer development, advertising, and promotion, as well as employee training, when these expenditures are expected to benefit future years. These capitalized expenditures are then amortized over their useful life. This approach is taken to better reflect the long-term value these expenditures are expected to generate for the company.

Many Consultants and Analysts Modify the Numbers Presented in External