Generally accepted accounting principles in the United States require firms to
A)capitalize and amortize all research and development costs over the future expected benefit period.
B)capitalize and amortize all research and development costs over a period no greater than 5 years.
C)capitalize and amortize all research and development costs over a period no greater than 10 years.
D)expense all research and development costs in the period incurred.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles in the United States require firms to expense all research and development costs in the period incurred. This means that the costs are recognized and deducted as an expense in the same period that they are incurred, rather than being capitalized and amortized over future periods.

Generally Accepted Accounting Principles in the United States Require Firms