Which of the following statements is correct?
A) All research and development costs should be capitalized.
B) Development costs are always capitalized.
C) Research costs should always be expensed as incurred.
D) All research and development costs should be expensed as incurred.

Question

Quizplus · Accepted Answer

Research costs should always be expensed as incurred according to accounting standards. Development costs may be capitalized under certain conditions, but this is not always the case, making statements A and B incorrect. Statement D is overly broad as it does not account for the possibility of capitalizing development costs under specific circumstances.

Which of the Following Statements Is Correct