GAAP Requires That Research and Development Costs Be

question 54

Multiple Choice

GAAP requires that research and development costs be

• A)capitalized
• B)expensed as incurred
• C)accumulated until the existence of future benefits is determined
• D)expensed in part and capitalized in part

---

Definitions:

Idle Funds

Money that is not currently invested or used in transactions, potentially earning no interest or profit.

Semiannually

Occurring or calculated twice a year.

Stock Dividend

A stock dividend is a dividend payment made to shareholders in the form of additional shares rather than a cash payout, affecting the company's share price and equity structure.

Journal Entry

A journal entry is a recording of a financial transaction in the accounting records of a business, indicating debts and credits to various accounts.