A Good Rule of Thumb for R&D Spending Is That

question 19

True/False

A good rule of thumb for R&D spending is that a corporation should spend at a "normal" rate for that particular industry unless its strategic plan calls for unusual expenditures.

---

Definitions:

Book Balance

Refers to the amount of funds on record that a company has in its financial accounts at a specific point in time, not necessarily reflecting pending transactions.

Outstanding Cheques

Cheques that have been written and recorded in the accounting records but have not yet been cashed or cleared through the banking system.

Uncollected Deposits

Funds that have been deposited into a bank account but have not yet been cleared or recognized as available balance due to processing time.

Float

The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.