Under Current Accounting Standards Preliminary Expenses of Forming a Company

question 1

Multiple Choice

Under current accounting standards preliminary expenses of forming a company must be treated as a(n) :

• A) asset.
• B) expense.
• C) deduction from the proceeds of the share issue.
• D) liability.

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Definitions:

Seminal Vesicles

Glands that produce seminal fluid, a component of semen, which provides nutrients and a medium for sperm during ejaculation.

Prostate Gland

A gland in the male reproductive system that produces seminal fluid, which nourishes and transports sperm.

Penis

The external male genital organ involved in sexual intercourse and urination.

Glans

The sensitive bulbous structure at the distal end of the penis or clitoris.