R&D expense is treated as an operating expense, not a capital expenditure, unless the R&D assets acquired have an altern

Question

bezimeni [28]

2 years ago

6

R&D expense is treated as an operating expense, not a capital expenditure, unless the R&D assets acquired have an altern

ative future use. Select one: True False

Social Studies

1 answer:

Mars2501 [29] · Answer 1 · 2022-03-31T11:18:53+03:00

Answer: The correct answer is : True

Explanation: the R&D assets are similar to regular plant assets, under GAAP, R&D costs are expensed unless the R&D assets have alternative future uses. If these assets do, indeed, have alternative future uses, they will be capitalized and depreciated. R&D expenses exclude any costs related to sales.