Expenditures on advertising and research must be recognized as expense in the period of expenditure, regardless of the firm's expectation of future benefits.

Question

Quizplus · Accepted Answer

This statement is in accordance with the Generally Accepted Accounting Principles (GAAP) which states that expenses must be recognized in the period in which they are incurred, regardless of the firm's expectation of future benefits.

Expenditures on Advertising and Research Must Be Recognized as Expense