37. LIFO reserve decreases from 2014 to 2015. How to interpret this change?

A) Inventory prices increase in 2015

B) Inventory prices decrease in 2015

C) There is nothing to do with inventory prices

D) Cannot determine

30. On its 2011 income statement, Yahoo! reported Product development expense of $1,005,090. Which of the following statements must be true?

A) Yahoo spent $1,005,090 in cash to develop new products and improve old products.

B) Product development expense reduced Yahoos 2011 net income by $1,005,090.

C) Yahoo capitalized at least $1,005,090 of product development costs in 2011.

D) The $1,005,090 included amortized product development costs from prior years that were not previously expensed, because Yahoo incurs such expenses each year.

E) None of the above

27. Oracle Corp. develops general ledger and other business application software that it sells to its customers. The customer pays an up-front fee for the right to use the software and a monthly fee for support services. When Oracle Corp. can recognize the upfront fee as revenue?

A) When the company receives the money

B) Ratably over the period of time that the company provides monthly services

C) When the software is installed

D) When the company stops to provide monthly services