Research & Development spending is considered as deferred revenue expenses . The correct the answer is none of the above.
R&D expenses are directly related to the research and development of a company's goods or services, as well as any intellectual property generated in the process. Direct R&D expenses are an important component of a company's research and development arm, which can range from relatively minor costs to several billions of dollars for large research-focused corporations.
Research and development expenses are typically incurred by a company in the process of discovering and developing new products or services. The outcome of this activity benefits the business in the coming years. As a result, these expenses are classified as deferred revenue expenses, with a portion of them charged to the profit and loss account.
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