Companies must write off research costs as expenses immediately.

Name: Companies must write off research costs as expenses immediately.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to 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 means they must write off these costs immediately in the period they are incurred.

Companies Must Write Off Research Costs as Expenses Immediately