The entry required to record start-up and organization costs will cause a decrease in net income for the period.

Question

Quizplus · Accepted Answer

Start-up and organization costs are typically one-time expenses that are incurred at the beginning of a new business venture. These costs are not considered operating expenses and therefore, are not included in the calculation of net income for the period. However, these costs must be recognized as an expense when incurred, which will decrease net income for the period.

The Entry Required to Record Start-Up and Organization Costs Will