Expenditures for Research and Development Intended to Lead to New

question 141

Multiple Choice

Expenditures for research and development intended to lead to new products of commercial value:

• A)Should be recorded as intangible assets and amortized during the years in which benefits are expected.
• B)Should be charged to expense when incurred.
• C)Should be capitalized only if patents are expected to be granted.
• D)Should be classified as deferred charges.

---

Definitions:

Steamboats

Paddlewheelers that could travel both up- and downriver in deep or shallow waters; they became commercially viable early in the nineteenth century and soon developed into America’s first inland freight and passenger service network.

Upstream Commerce

The activities involved in the sourcing and procurement processes before goods reach the retailer or final consumer.

Water Transportation

A method of transporting goods and people using waterways, including oceans, rivers, lakes, and canals, utilizing various types of vessels.

Road Transportation

The movement of goods and people from one place to another over roads, using vehicles such as cars, trucks, and buses.