**PLEASE DO NOT CHOOSE RED CHOICE AS IT IS INCORRECT**

PLEASE SHOW HOW U DECIDED ANSWER AND EXPLAIN REASON CHOSE**

A.

B.

Return to question Which of the following is not true with regard to the relationship between R&D expenses and the value of the company's stock shares, as perceived by investors and analysts? Multiple Choice There is no evidence that R&D expenses represent value-relevant information to investors. There is a causal relationship between R&D expenditures and future financial benefits. A $1 increase in R&D expenditures leads to a $5 Increase in the market value of the company's stock shares. Analysts adjust estimates of unrecorded R&D assets which are then used to adjust reported earnings and book values. Which of the following is not a difference between U.S. GAAP and IFRS treatment of impaired assets? Multiple Choice The use of discounted cash flow. Due to differences, U.S. GAAP may trigger an impairment loss that would not be triggered by IFRS. In determining the valuation, costs to sell are deducted from falr value. 0 The right to reverse prior impairment losses when there is a change in the estimates used to measure the loss