Houjichasan

The question asks "Which accounting policies had the largest effect on the increase in EBIT?" (The vignette capitalized software costs and interest costs.)

Since capitalizing interest costs should decrease EBIT, I think the correct answer should be
B. Software costs
because if expensed, software cost is above EBIT. Therefore EBIT is higher when capitalizing than when expensing software costs.



Edited 1 time(s). Last edit at Sunday, May 15, 2011 at 09:59AM by zestzorb.