Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits.

Scientists at University of Toronto have received a patent for their newly discovered technologies for more effective customer interface interactions in retail stores. The university decided to sell the patent to an independent company whose scientists immediately began exploration into practical uses of this new technology. What are the scientists at the independent company involved in?

a. product development b. applied research c. brainstorming d. basic research

Cash paid to employees is calculated as salary and wage expense minus increases in salaries and wages payable

Indicate whether the statement is true or false.