Which of the Following Is the Proper Accounting Treatment for Research

question 98

Multiple Choice

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

• A) Research and development costs must be capitalized and amortized over 70 years or less.
• B) Research and development costs must be capitalized and amortized over 20 years or less.
• C) Research and development costs must be capitalized and expensed each year to the extent that their value has declined.
• D) Research and development costs must be expensed.

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Definitions:

Structural RNA

RNA molecules that are not translated into protein but form an integral part of cellular structures like ribosomes.

Ribosomes

Cellular organelles that serve as the site of protein synthesis, reading mRNA and linking amino acids together.

Interphase

The phase of the cell cycle during which a cell grows, duplicates its DNA, and prepares for division.

Centrioles

Cylindrical structures in animal cells that play a key role in cell division.