ACC 304 All Assignments ACC 304 All Assignments | Page 221

53. 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
54. How should research and development costs be accounted for,
according to a Financial Accounting Standards Board Statement?
a. Must be capitalized when incurred and then amortized over their
estimated useful lives.
b. Must be expensed in the period incurred.