Intangible assets may be purchased or developed. If developed, they are categorized as Research and Development and:

Question

Quizplus · Accepted Answer

Intangible assets that are developed internally are typically expensed in the period in which the cost is incurred, especially during the research phase. This is because it is often uncertain whether the research will result in a recognizable intangible asset that can generate future economic benefits.

Intangible Assets May Be Purchased or Developed