Expenditures for research and development are generally recorded as
A)assets and amortized over their estimated useful life
B)current operating expenses
C)assets and amortized over 40 years
D)current assets

Question

Quizplus · Accepted Answer

Expenditures for research and development are considered current operating expenses because they are incurred to generate current revenues and are not expected to have any future economic benefits beyond the current period. Therefore, they should be expensed in the period incurred rather than recorded as assets and amortized over time.

Expenditures for Research and Development Are Generally Recorded as