Research and Development Costs Should Be Capitalized When The

question 57

Multiple Choice

Research and development costs should be capitalized when the:

• A)Future benefit is probable and the amount can be reasonably estimated.
• B)Future benefit is reasonably possible and the amount can be reasonably estimated.
• C)Future benefit is probable and the amount cannot be reasonably estimated.
• D)None of these.

---

Definitions:

Axon terminals

The endings of axons, responsible for transmitting signals through neurotransmitters to other neurons or muscles.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.

Enzymes

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.

Hormones

Chemical messengers produced by the endocrine glands in the body, which travel through the bloodstream to target organs to regulate physiology and behavior.