Which of the Following Is True Regarding the Accounting for Research

question 49

Multiple Choice

Which of the following is true regarding the accounting for research and development costs under international accounting standards?

• A) All research and development costs of any type are expensed.
• B) All ordinary research and development costs are expensed,but development costs related to computer software are capitalized.
• C) All ordinary research and development costs are expensed,but both research and development costs related to computer software are capitalized.
• D) All development costs of any nature are capitalized.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, representing the operational, investing, and financing activities over a period.

Long-term Debt

Financial obligations or loans that are due for repayment beyond a period of one year.

Dividends Payable

Liabilities representing a company's obligation to pay shareholders a declared dividend.

Operating Activities Section

A part of a company's cash flow statement that shows the cash flow from its core business operations.