Operating Losses Incurred During the Start-Up Years of a New

Multiple Choice

Operating losses incurred during the start-up years of a new business should be

A) accounted for and reported like the operating losses of any other business.
B) written off directly against retained earnings.
C) capitalized as a deferred charge and amortized over five years.
D) capitalized as an intangible asset and amortized over a period not to exceed 20 years.