The Benefits from Research and Development Activities

question 282

Multiple Choice

The benefits from research and development activities

• A) are limited to the firm winning a patent.
• B) are limited to the firms investing in similar research and development projects.
• C) are limited to the nation in which the research and development is taking place.
• D) spill over to others, including foreign residents.

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Definitions:

Land

Land is considered a fixed asset or real property, not depreciable under accounting rules, used by businesses for operations or investment.

Cash Inflow

Money received by a business from various sources including sales, investments, financing, and more.

Indirect Method

A method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash, to determine net cash provided by operating activities.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.