Question: A company spends $ 5 0 , 0 0 0 this year in research and development for a new drug to cure liver damage. By

A company spends $

50, 000

this year in research and development for a new drug to cure liver damage. By the end of the year, management feels confident that the new drug will gain Food and Drug Administration approval and lead to higher future sales. What impact will the $

50, 000

spending have on this year's financial statements?

Multiple Choice

Increase expenses

Decrease revenues

Increase assets

Increase revenues

17

20

A company spends $ 5 0 , 0 0 0 this year in

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