NThis is for my intermediate Accounting course and I don't understand it at all.A1-12 Accounting Policies and Reporting Objectives: Entities may have a variety of corporate reporting objectives specific to their circumstances, such as: a Assessing and predicting cash flows; b Minimizing current income taxes; c Complying with restrictive covenants (specifically, debt covenants that specify minimum levels of shareholders equity); and d Evaluating managements performance. Required: For each of the accounting policies listed below, indicate which objectives of corporate reporting are best served. Each policy may serve more than one objective.

1 Capitalize and amortize development costs.

2 Disclose potential lawsuits against the company.

3 Defer expenses to match them against revenue generated from the activity.

4 Delay recognizing revenue as long as possible.

5 Write off goodwill.

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