Random Cards for FAR

Question 1

The balance sheet of a development stage enterprise should include any ________ reported with a caption such as “deficit accumulated during the development stage” in the stockholders’ equity section

Answer 1

cumulative net losses

Question 2

The balance sheet of a development stage enterprise should include any cumulative net losses reported with a caption such as “deficit accumulated during the development stage” in the _____________.

Answer 2

in the stockholders’ equity section

Question 3

The cumulative-effect type accounting change made in the third quarter should be accounted for in _______.

Answer 3

retained earnings