Generally Accepted Accounting Principles in the United States Require Firms

question 44

Multiple Choice

Generally accepted accounting principles in the United States require firms to

• A)capitalize and amortize all research and development costs over the future expected benefit period.
• B)capitalize and amortize all research and development costs over a period no greater than 5 years.
• C)capitalize and amortize all research and development costs over a period no greater than 10 years.
• D)expense all research and development costs in the period incurred.
• E)None of these answer choices is correct.

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Definitions:

Flash

In technology, this often refers to a storage medium known for its fast access speeds and durability, commonly used in USB drives and solid-state drives.

Wireless Communication

The transfer of information or power between two or more points that are not connected by an electrical conductor, using electromagnetic waves.

Airplane Mode

Enables users to disable all wireless communication but still view a movie or play a game that does not require Internet connectivity.

Geotracking

The ability to track where a GPS-capable mobile device, such as a cell phone, is located. Companies can also use geotracking to locate lost or stolen mobile devices.