1. At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have alternative future uses in research and development should be

A. charged directly to retained earnings

B. included in R&D expense immediately

C. charged as a loss from continuing operations

D. capitalized

2. Which of the following accounting principles or conventions is contradictory to the GAAP requirement to expense R&D costs immediately?

A. historical cost principle

B. comparability

C. matching principle

D. conservatism

3. Which of the following accounting principles or conventions is contradictory to the GAAP requirement to expense R&D costs immediately?

A. historical cost principle

B. comparability

C. matching principle

D. conservatism