Organization Costs Should Be

question 23

Multiple Choice

Organization costs should be

• A) treated as an operating expense when incurred.
• B) debited to an intangible asset account when incurred and systematically charged to expense over a period of up to 40 years.
• C) debited to an intangible asset account when incurred and carried at the original amount until the business ceases operations.
• D) debited to an intangible asset account when incurred and carried at the original amount until the business begins to earn a profit.

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Definitions:

Particular Value

A specific, defined value, often in the context of evaluating or testing statistical hypotheses.

Simple Linear Regression

A statistical method that shows or predicts the relationship between two continuous variables, using a straight line to describe the linear relationship.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Residuals

Differences between observed values and the estimated values in a statistical model, reflecting the amount of unexplained variance in the model.