Explain Why Research Expenditures and Expenditures on Internally Generated Such

question 46

Essay

Explain why research expenditures and expenditures on internally generated such as,brands,mastheads and publishing titles are not capitalised regardless of whether they are likely to generate future economic benefits.

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Definitions:

Uncollectible Percentage

The estimated portion of accounts receivable that a company does not expect to collect.

Uncollectible Accounts

Accounts receivable that are considered to be uncollectible and represent losses to the company, often written off as bad debt.

Bad Debts Expense

Bad Debts Expense represents the estimated amount of receivables that a company does not expect to collect.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet by the amount expected not to be collected.