All of the Following Items Are Expensed as Start-Up Costs

question 51

Multiple Choice

All of the following items are expensed as start-up costs except

• A) promotional costs for opening a new facility.
• B) one-time costs for conducting business in a new territory.
• C) licensing fees for starting a new franchise.
• D) accounting fees for forming a new company.

---

Definitions:

Express Warranty

An explicit promise made by a seller regarding the quality, condition, or performance of the goods being sold.

New England Seafood Chowder

A traditional creamy soup from the New England region made with seafood like clams and fish, potatoes, onions, and celery.

Lost Profits

Potential earnings or revenues that a business or individual did not realize due to an interruption, breach of contract, or other adverse events.

Breach of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract without a legitimate legal excuse.