GAAP requires that research and development costs be
A)capitalized
B)expensed as incurred
C)accumulated until the existence of future benefits is determined
D)expensed in part and capitalized in part

Question

Quizplus · Accepted Answer

GAAP requires that research and development costs be expensed as incurred. This means that companies cannot capitalize such costs and must recognize them as expenses on their income statement in the period in which they are incurred.

GAAP Requires That Research and Development Costs Be