Research and Development Costs Should Be Charged to Expense When

question 70

True/False

Research and development costs should be charged to expense when incurred.

---

Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services already provided but not yet paid for.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the financial health and liquidity of a company.

Operations

The day-to-day activities necessary for a business to function, including production, sales, and administration.

PP&E

Property, Plant, and Equipment - tangible long-lived assets used in the normal course of business to produce goods and services.