Development-Stage Enterprise (U.S. GAAP)

Question 1

A development-stage enterprise is one in which either: principal operations have not yet ______ or principal operations have generated an _______ amount of revenue (loss)

Answer 1

commenced; insignificant

Question 2

During the development stage, a company devotes most of its activities and resources to _____ ___ _______

Answer 2

establishing the business

Question 3

Start-up and organizational costs are expensed immediately under ______

Answer 3

GAAP

Question 4

Required disclosures for a development-stage enterprise (2):

Answer 4

identify the financial statements as those of a development-stage enterprise
cumulative balance sheet, income statement, statement of cash flows

Question 5

Deficits accumulated during the development stage of a company should be reported as a part of _________ _______

Answer 5

stockholder’s equity