Research and development costs are
A) capitalized and depreciated over the period which they benefit.
B) expensed as incurred.
C) added to the cost of the invented product.
D) added to the cost of the invented product if a reliable date of actual production is known.
B
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According to the ______ hypothesis, given enough time, cultures will converge to the point that no difference in values, attitudes, beliefs, and behavior exists.
A. convergence B. divergence C. equilibrium D. globalization
A small increase in the gross profit percentage may indicate an important rise in income
Indicate whether the statement is true or false
Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = IDecrease = DNo Effect = NA(Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Benitez Company purchased an asset for $50,000. The asset has an estimated salvage value of zero and an 8-year useful life. On January 1, Year 3, the company spent $2,400 cash on routine repairs and maintenance. What effect will the Year 3 expenditure have on the company's financial statements?AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt.
of ?IncomeCash Flows??????? What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Depreciation is a process of valuation of an asset. 2. Depreciation is based upon cost, useful life and salvage value. 3. The choice of depreciation method depends on the cost of the asset and its' expected useful life. 4. A company should choose a depreciation method that most closely matches the cost of the asset against the future revenues it generates. 5. Expenditures incurred, such as replacing the tires on a company car, would be considered ordinary repairs.