Generally Accepted Accounting Principles (GAAP) Require That Research and Development

question 98

Multiple Choice

Generally accepted accounting principles (GAAP) require that research and development costs to develop a new product be

• A)capitalized in the patents account.
• B)expensed in the period incurred.
• C)capitalized in the research and development costs account.
• D)amortized over the expected economic life of the new product.

---

Definitions:

Environmentally Safe Material

Materials that are not harmful to the environment, often characterized by being recyclable, biodegradable, or non-toxic.

Payoff Table

A tabular representation of the outcomes or payoffs from different decisions or strategies under various states of nature.

Expected Opportunity Loss

The anticipated amount of loss associated with not choosing the best course of action.

Environmentally Safe Material

Substances or materials that do not harm the environment, including during their production, use, and disposal.