Final Answer:
Computer software developed internally or obtained only for internal use should be capitalized under generally accepted accounting principles (GAAP).
Step-by-step explanation:
According to GAAP, computer software developed internally or obtained for internal use should be capitalized. Capitalization involves recognizing the costs associated with software development as an asset on the balance sheet, rather than expensing them immediately.
This ensures that the costs are spread over the useful life of the software and matched with the revenue it helps generate. However, if the software is for external sale, it is treated as an expense.
Capitalizing internal-use software aligns with the principle of matching expenses with revenue recognition and provides a more accurate representation of the organization's financial position.