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:

Moral Intuition

The instantaneous, gut-feeling or emotionally charged judgments that people make about what is right or wrong, moral or immoral, without conscious reasoning.

Role Confusion

A situation in which an individual is unsure about their role in society or lacks direction in their personal or professional life.

Affectionate Relationships

The emotional bonds and connections formed between individuals that involve feelings of warmth, care, and love.

Independence

The state or quality of being self-reliant and free from outside control or support in decision-making and daily activities.