GAAP requires that research and development costs be

A) capitalized
B) expensed as incurred
C) accumulated until the existence of future benefits is determined
D) expensed in part and capitalized in part

Question

GAAP requires that research and development costs beA) capitalizedB) expensed as incurredC) accumulated until the existence of future benefits is determinedD) expensed in part and capitalized in part

Elena Zurflueh · Accepted Answer

Final Answer : B, Explanation :  GAAP requires that research and development costs be expensed as incurred. This means that companies cannot capitalize such costs and must recognize them as expenses on their income statement in the period in which they are incurred.

GAAP requires that research and development costs be

A) capitalized
B) expensed as incurred
C) accumulated until the existence of future benefits is determined
D) expensed in part and capitalized in part

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Learning Objectives

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