Which of the following principles best describes the current method of accounting for research and development costs?
A) Associating cause and effect
B) Systematic and rational allocation
C) Income tax minimization
D) Immediate recognition as an expense

Question

Quizplus · Accepted Answer

The current method of accounting for research and development costs is immediate recognition as an expense, meaning that these costs are charged to expense as incurred rather than being capitalized as an asset.

Which of the Following Principles Best Describes the Current Method