Under accrual basis accounting,research and development expenses for new products are recorded as ________.
A) assets and written off systematically over the expected life
B) assets and expensed when paid in cash
C) assets and expensed when the related products are sold
D) expenses immediately

Question

Quizplus · Accepted Answer

Under accrual basis accounting, research and development expenses for new products are immediately recognized as expenses and are not capitalized as assets. This is because research and development expenses are considered to be an expense incurred to generate future revenues rather than an asset that will generate future economic benefits.

Under Accrual Basis Accounting,research and Development Expenses for New Products