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NEW QUESTION: 2
Deficits accumulated during the development stage of a company should be:
A. Capitalized and written off in the first year of principal operations.
B. Reported as a part of stockholders' equity.
C. Capitalized and amortized over a five year period beginning when principal operations commence.
D. Reported as organization costs.
Answer: B
Explanation:
Choice "b" is correct. Deficits accumulated during the development stage of a company should be
reported as a part of stockholders' equity.
Rule: Development stage enterprises should present FS in accordance with GAAP and make additional
disclosures such as: cumulative net losses, cumulative deficit (as part of equity), cumulative sales &
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Choices "a", "c", and "d" are incorrect, per the rule above.

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Universal Containers wants to create a Job Application custom object related to a Job Posting custom object.
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C. Lookup
D. Roll-up Summary
Answer: C

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