Which of the following statements regarding firms that capitalize versus expense costs is least accurate（）
A. Cash flow from financing is the same whether costs are capitalized or expensed.
B. Firms that capitalize costs initially have lower profitability ratios compared to expensing firms.
C. Costs of acquiring a trademark by purchasing it are capitalized.
参考答案：B
解析：
In the early years, firms that expense costs will have lower profitability ratios such as return on assets (ROA) and return on equity (ROE). In later years as growth subsides, expensing firms will have lower asset and equity balances and hence higher profitability measures such as ROA and ROE. Marketing costs that are not directly related to sales are expensed when incurred but marketing costs directly related to sales are capitalized. Cash flow from financing is not affected by the expensing or capitalizing decision only cash flow from operations and cash flow from investing. Brands and trademarks if acquired in arm’s-length transactions may be capitalized.