How Should Focus Company Record Expenditures for Research and Development

question 77

Multiple Choice

How should Focus company record expenditures for research and development costs according to US.GAAP?

• A) expense as incurred
• B) capitalize and depreciate
• C) amortize them over 60 months
• D) none of the above

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Definitions:

Cumulative Frequency Distribution

A tabular summary of quantitative data showing the number of data values that are less than or equal to the upper class limit of each class.

Relative Frequency

The proportion of occurrences of a specific event compared to the overall amount of attempts or observations.

Nonoverlapping Classes

Categories or groups in a classification system where each member of the population belongs to one and only one group, ensuring distinct boundaries.

Cumulative Frequency

The sum of a series of frequencies, calculated by adding each frequency from a frequency distribution table to the sum of its predecessors.