Assume U.S. GAAP applies unless otherwise noted. Two companies are identical except fortheir accounting treatment of R&D costs. One company expenses all such costs immediately while the other capitalizes a portion of the costs. Compared with the company that capitalizes costs,the company that expenses immediately will most likely:
A. Earn a lower return on assets.
B. Have lower financial leverage
C. Report lower cash flow from operations in the statement of cash flows.
Solution:C
Companies that capitalize R&D costs report those expenditures in CFl; companies that expense R&D costs report those expenditures in CFO.
费用化那么NI相比较不是也变少了吗，为啥A选项不对。
