Generally Accepted Accounting Principles (G.A.A.P) require that all research and
ID: 2510118 • Letter: G
Question
Generally Accepted Accounting Principles (G.A.A.P) require that all research and development costs incurred to developed a new product be:
a.
Capitalized as an acquisition cost on the balance sheet of a company.
b.
Treated as a capitalization to the research and development asset account.
c.
Treated as if they are an intangible asset and amortized over their expected economic life.
d.
Treated as expenses when they are incurred.
a.
Capitalized as an acquisition cost on the balance sheet of a company.
b.
Treated as a capitalization to the research and development asset account.
c.
Treated as if they are an intangible asset and amortized over their expected economic life.
d.
Treated as expenses when they are incurred.
Explanation / Answer
Generally Accepted Accounting Principles (G.A.A.P) require that all research and development costs incurred to developed a new product be Treated as expenses when they are incurred. Option D is correct
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