R&D expense is treated as an operating expense, not a capital expenditure, unless the R&D assets acquired have an alternative future use. Select one: True False

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15 July, 07:22

R&D expense is treated as an operating expense, not a capital expenditure, unless the R&D assets acquired have an alternative future use. Select one: True False

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Phoenix Greene · Answer 1

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.