Following U

question 157

Multiple Choice

Following U.S. GAAP, which of the following costs should be capitalized in the year incurred?

• A) costs to successfully defend a patent
• B) research and development costs for a new product to be introduced later this year
• C) cost to internally generate goodwill
• D) development costs for a new product

---

Definitions:

Without Recourse

A clause indicating that the holder of a negotiable instrument cannot seek payment from the sender in the event of non-payment by the intended party.

Contractual Liability

Legal obligations arising from contracts entered into by an entity or individual.

Warranty Liability

The legal obligation of a seller to ensure the goods or services sold meet certain quality and performance standards.

Dishonor

The refusal or inability to pay a bill of exchange or fulfill a financial obligation when due.