Final answer:
If an intangible asset is being self-constructed or internally developed, its costs are generally debited to work-in-progress and development expense.
Step-by-step explanation:
AI-generated answer
The statement is generally true.
When an intangible asset is self-constructed or internally developed, the costs associated with its creation are typically debited to work-in-progress and development expense accounts. This accounting treatment allows for the tracking of costs incurred during the construction or development process.
The costs related to self-construction or internal development can include direct costs, such as materials and labor, as well as indirect costs, such as overhead expenses. By debiting these costs to work-in-progress, the company can track the cumulative costs incurred in bringing the intangible asset to its final state.
Once the construction or development is complete, the costs are then transferred from work-in-progress to the appropriate intangible asset account. This ensures that the costs are properly allocated and reflected on the company's balance sheet.