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Financial Accounting

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Treatment of Research and Development: Expense or Capitalize?

FINACT-S9UI9B

What is the proper accounting for research and development costs?

A

Classify them as an intangible asset and amortize over their useful life.

B

Classify them as an intangible asset and amortize over their legal life.

C

Expense them when they are incurred and paid.

D

Expense them when they are incurred, even if not paid yet.