Merck Pharmaceutical Company has many scientists working in their labs trying to develop a new drug to treat congestive heart failure.Following U.S.Generally Accepted Accounting Principles,the cost of this research and development must be:

Question

Quizplus · Accepted Answer

According to Generally Accepted Accounting Principles, research and development costs must be expensed as incurred rather than being treated as an intangible asset. Therefore, the best choice is Option D, which states that the cost should be expensed as it is incurred.

Merck Pharmaceutical Company Has Many Scientists Working in Their Labs