A Deductible Under Which Expenses Are Accumulated on an Annual

question 49

Multiple Choice

A deductible under which expenses are accumulated on an annual basis,and once a specified total is reached,the deductible is satisfied for the year is called a

• A)calendar-year deductible.
• B)prospective deductible.
• C)straight deductible.
• D)waiting period.

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Definitions:

International Accounting Standards

A set of accounting standards, issued by the International Accounting Standards Board (IASB), that aim to standardize accounting practices across the globe.

R&D Costs

Expenses associated with research and development activities, aimed at discovering new knowledge or innovations that could lead to new products or improvements in existing ones.

Capitalized

Recorded as an asset rather than an expense, spreading the cost over time through depreciation or amortization.

Research and Development

The activities undertaken by a business or organization to innovate and introduce new products or services.