Which of the Following Is the Proper Accounting Treatment for Research

question 15

Multiple Choice

Which of the following is the proper accounting treatment for research and development costs?

• A)Research and development costs must be capitalised and amortised over 20 years or less.
• B)Research and development costs must be capitalised and amortised over 70 years or less.
• C)Research and development costs must be capitalised and expensed each year to the extent that their value has declined.
• D)Research costs must be expensed and development costs may be capitalised in limited circumstances.

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Definitions:

Three-year-olds

Three-year-olds are children at the age of three, a developmental stage where significant growth in language, motor skills, and social interaction is observed.

Scaffolding

Vygotsky’s term for temporary cognitive structures or methods of solving problems that help the child as he or she learns to function independently.

Imaginary Friend

A psychological and social phenomenon where a friendship or other interpersonal relationship takes place in the imagination rather than physical reality.

Animism

The attribution of life and intentionality to inanimate objects.