Research and Development Costs Are Initially _____

question 31

Multiple Choice

Research and development costs are initially _____.

• A)recorded as assets, and written off in a systematic way over a period of years
• B)recorded as assets, and are expensed when the goods produced are sold
• C)recorded as assets, and are expensed when they are paid in cash
• D)expensed

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Definitions:

Transfer of Title

The legal process of transferring ownership of property or an asset from one individual or entity to another.

Presumed

Accepted as true or valid based on the existing evidence or probability, without requiring proof or further demonstration.

Insurable Interest

A requirement in insurance policies that the policyholder must stand to suffer a financial or emotional loss if the insured event occurs.

Lease

A contract by which one party conveys land, property, services, or the use of assets to another party for a specified time, in return for a periodic payment.