Generally Accepted Accounting Principles (GAAP) Require That Research and Development

question 98

Multiple Choice

Generally accepted accounting principles (GAAP) require that research and development costs to develop a new product be

• A)capitalized in the patents account.
• B)expensed in the period incurred.
• C)capitalized in the research and development costs account.
• D)amortized over the expected economic life of the new product.

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Definitions:

Chief Accounting Officer

The Chief Accounting Officer (CAO) is a senior executive responsible for managing the accounting operations of an organization.

Controller

A senior position in a business responsible for overseeing the accounting operations and financial reporting.

Cash Position

The amount of liquid assets that are readily available to an individual, company, or organization.

Treasurer

A financial officer responsible for managing the treasury, including overseeing cash management, investments, and risk assessments of an organization.