In Accounting for Research and Experimental Expenditures,all of the Following

question 38

Multiple Choice

In accounting for research and experimental expenditures,all of the following alternatives are available with the exception of

• A)expense R&E costs in the year paid or incurred.
• B)expense R&E costs in the year in which a product or process becomes marketable.
• C)defer and amortize R&E costs as a ratable deduction over a period of 60 months or more.
• D)capitalize and write off R&E costs only when the research project is abandoned or is worthless.

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Definitions:

Statistically Significant

A determination that a relationship observed in a dataset is unlikely to have occurred by chance, according to a predefined significance level.

Significance Level

This is the probability of rejecting the null hypothesis when it is true, usually denoted by alpha (α), and used as a threshold for determining statistical significance.

Null Hypothesis

A hypothesis that states there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Expected Number

A statistical term referring to the calculated average or mean value anticipated in a probability distribution or experiment.