USGAAP Requires Firms to Expense Research and Development (R&D) Costs

question 132

True/False

U.S.GAAP requires firms to expense research and development (R&D) costs in the period incurred.

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Definitions:

Situational Attribution

The process of explaining the behavior of others based on external factors, such as the situation or environment, rather than on internal characteristics.

Temporary

Occurring for a limited time period; not permanent.

Permanent

Describes something that lasts indefinitely without significant change or end.

Fundamental Attribution Error

In explaining other people’s behavior, the tendency to overemphasize personality traits and underestimate situations.