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.

Recognize the unintended consequences of government regulations and their effects on the economy.

Identify the role of government in enforcing laws and contracts and its impact on economic risk and efficiency.

Discuss the challenges related to the size and scope of government in economic decision-making.

Analyze the principles of public choice theory and its application to government decision-making, politics, and elections.

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Definitions:

Fringe Benefits

Benefits provided to employees in addition to wages and salaries.

Revenues And Expenses

The income a business earns from its operations and the costs incurred to generate that income.

Payroll Taxes

Taxes that are withheld from employees' wages by their employer and paid to the government, often including social security and medicare taxes.

Social Security Taxes

Taxes collected from employees and employers to fund the Social Security program, which provides benefits to retirees, disabled persons, and survivors of deceased workers.