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.

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Definitions:

Licensing

A requirement that one obtain permission from the government in order to perform certain business activities or work in various occupations.

Essential Resource

A fundamental input or asset that is necessary for the production processes or for sustaining life and economic activities.

Taxi Cabs

Licensed vehicles for hire that provide passenger transport services for a fare, traditionally hailed on the street or booked in advance.

Cab Fares

Charges levied for the service of transporting individuals in taxicabs, typically based on distance traveled and time taken.