During the startup stage in a new venture's life cycle, the income statement typically shows no sales and shows expenses for the production and marketing of products or services.

Question

Quizplus · Accepted Answer

During the startup stage, a new venture might have minimal sales recorded on the income statement, but it's not accurate to say there are no sales. The statement will show expenses related to production, marketing, and other operational costs, but it can also show initial sales revenue.

During the Startup Stage in a New Venture's Life Cycle