Quiz 10.141 – Treatment of Research and Development (R&D) Costs
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
How is Research and Development (R&D) costs generally treated by reporting entities?
How is Research and Development (R&D) costs generally treated by reporting entities?
What items are typically included in the research and development expense for a given period?
What is the impact of $50,000 spending on Research and Development (R&D) for a new drug on this year’s financial statements, if management feels confident about gaining FDA approval and higher future sales?
In the given scenario, when will the $100,000 spent on research and development in 2021 be recognized as an expense?
What costs related to research and development are eligible to be capitalized rather than expensed?
The initial franchise fee plus present value of estimated future fees paid to franchisor (for future services) are capitalized at start of franchise period?
What does a cloud computing arrangement involve?
What conditions must be met for a company to capitalize the cost of a cloud computing arrangement?
What costs related to cloud computing arrangements are NOT eligible to be capitalized?
How is “developed technology” recorded when a company acquires another company?