Question

Which of the following statements is false? (2 points) If a tangible asset has a finite life, it should be amortized Goodwill is recorded only when a business is purchased Research and development costs are expensed when incurred, except when the costs result in a successful patent. None of the above

Answer 1

Answer:

The correct answer is (d)Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.

Explanation:

Research and development costs must be recognized as an expense within the accounting period in which they are presented, since regardless of whether or not a patent was obtained, the organization incurred costs represented in the research and development process that was executed. When this process generates a patent, it is necessary to recognize said right in an asset, but at no time will it be equal to the expenses incurred in the investigation process, since the company hopes to commercialize that knowledge for its own benefit.