How should Focus company record expenditures for research and development costs according to US. GAAP?
a. expense as incurred
b. capitalize and depreciate
c. amortize them over 60 months
d. none of the above
A
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A. disclose the departure from GAAP in a separate paragraph of the report. B. issue an adverse or an "except for" qualified opinion, depending on materiality. C. express negative assurance on the accounting principles that do not conform with GAAP. D. express positive assurance on the accounting principles that conform with GAAP.
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