Which of the Following Is True Regarding the Accounting for Research

question 49

Multiple Choice

Which of the following is true regarding the accounting for research and development costs under international accounting standards?

• A) All research and development costs of any type are expensed.
• B) All ordinary research and development costs are expensed,but development costs related to computer software are capitalized.
• C) All ordinary research and development costs are expensed,but both research and development costs related to computer software are capitalized.
• D) All development costs of any nature are capitalized.

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Definitions:

Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all.

Peripheral Vision

The area of vision that occurs outside the very center of gaze, enabling detection of objects and movement not directly in the line of sight.

Color-Blind

The inability or decreased ability to see color or distinguish color differences under normal lighting conditions.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron body to other cells.