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CFA Level 1 Question of the Week - Financial Reporting and Analysis
An artificial intelligent start-up in Silicon Valley is working on a software for robot babysitters. Assuming that the firm follows US GAAP, how will the firm's accountant allocate the Research and Development costs most appropriately?
CFA Level 1 Question of the Week - Financial Reporting and Analysis 12 votes
A. Expense the both Research and Development costs.
B. Expense the Research cost and capitalize the Development cost.
C. Capitalize the Research cost and expense the Development cost.