GAAP requires that a company expense all of its research and development costs as they are incurred.

Name: GAAP requires that a company expense all of its research and development costs as they are incurred.
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Question

Quizplus · Accepted Answer

Under Generally Accepted Accounting Principles (GAAP), companies are required to expense research and development (R&D) costs as they are incurred rather than capitalizing them as assets. This is because the future economic benefits of R&D expenditures are uncertain.

GAAP Requires That a Company Expense All of Its Research