Expenditures for research and development are generally recorded as
A) current operating expenses
B) assets and amortized over their estimated useful life
C) assets and amortized over 40 years
D) current assets

Question

Quizplus · Accepted Answer

Expenditures for research and development are typically recorded as current operating expenses. This accounting treatment is because the future economic benefits of R&D are uncertain, making it difficult to capitalize these costs as assets.

Expenditures for Research and Development Are Generally Recorded as