The normal rule for accounting for research and development costs is to record these costs as assets.

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred, not capitalized as assets, according to generally accepted accounting principles (GAAP) in the United States. Exceptions to this general rule may exist for certain types of expenditures (e.g., software development costs) or in other countries that follow different accounting standards.

The Normal Rule for Accounting for Research and Development Costs