At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have no alternative future uses in research and development or other activities should be
A)capitalized
B)charged directly to retained earnings
C)included in R&D expense immediately
D)charged as a loss from continuing operations

Question

Quizplus · Accepted Answer

Materials, equipment, facilities, and intangibles that are acquired for research and development and have no alternative future use should be expensed immediately as R&D expense according to accounting standards. This reflects the immediate consumption of these resources in the research and development process.

At the Date of Purchase, Materials, Equipment, Facilities, and Intangibles