The Entire Cost of Developing Computer Software Should Be Capitalized

question 27

True/False

The entire cost of developing computer software should be capitalized and amortized over the software's useful life.

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Definitions:

Nontrade Receivables

Amounts owed to a business that are not related to the sale of goods or services, such as tax refunds, advances to employees, or insurance claims.

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and making major corporate decisions.

Direct Write-Off Method

The method of accounting for uncollectible receivables that recognizes an expense only when an account is determined to be worthless.

Allowance Method

The method of accounting for uncollectible receivables that recognizes an expense by estimating future uncollectible accounts at the end of the accounting period.