Question

Research and development costs (R&D) are generally:

A. listed as "long-term assets" on the Balance Sheet.

B. listed as "current assets" on the Balance Sheet.

C. listed as "other intangibles" on the Balance Sheet.

D. expensed and become part of the Income Statement.

Answer 1

Research and development costs (R&D) are expensed and become part of the Income Statement.

Step-by-step explanation:

Research and development costs (R&D) are generally expensed and become part of the Income Statement. They are not listed as assets on the Balance Sheet. R&D expenses are recognized as they are incurred, and they are considered operating expenses that reduce the company's net income.