How should Focus Company record expenditures for research and development costs according to U.S.GAAP?
A) expense as incurred
B) capitalize and depreciate
C) amortize them over 60 months
D) None of these are correct.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, research and development costs are generally considered expenses and should be expensed as incurred. Only certain development costs that meet specific criteria may be capitalized and depreciated over their useful lives.

How Should Focus Company Record Expenditures for Research and Development