What characteristics should your long-term goal have?

How should research and development costs be accounted for, according to a Financial Accounting Standards Board Statement?

a. Must be capitalized when incurred and then amortized over their estimated useful lives. b. Must be expensed in the period incurred. c. May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved. d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.

You start an annuity with $1million and expect to receive 12 equal payments beginning at the end of the first year. The guaranteed annual interest rate is 6 percent. The annual payments that you expect to collect are

A. $88,333.33. B. $119,277.03. C. $59,638.51. D. $56,262.75. E. $112,525.50.