1) Which of the following costs should be capitalized, rather than expensed, as incurred? A) B) C) D) Start-up costs First year operating losses Legal fees to successfully defend a patent Research costs to develop a new product 2) Stock dividends distributable should be classified: A) on the income statement as an expense B) on the balance sheet as an asset C) on the balance sheet as a liability D) on the balance sheet as an item of stockholders' equity E) None of the above. 3) Accrued liabilities are disclosed in financial statements by A) a footnote to the financial statements. B) Showing the amount among the liabilities but not extending it to the liability t C) An appropriation of retained earnings. D) Appropriately classifying them as regular liabilities in the balance sheet E) None of the above. 4) Which of the following costs of goodwill should be capitalized and amortized? Developing Goodwill A) B) C) D) Yes No Yes No No No Yes Yes 1) Which of the following costs should be capitalized, rather than expensed, as incurred? A) B) C) D) Start-up costs First year operating losses Legal fees to successfully defend a patent Research costs to develop a new product 2) Stock dividends distributable should be classified: A) on the income statement as an expense B) on the balance sheet as an asset C) on the balance sheet as a liability D) on the balance sheet as an item of stockholders' equity E) None of the above. 3) Accrued liabilities are disclosed in financial statements by A) a footnote to the financial statements. B) Showing the amount among the liabilities but not extending it to the liability t C) An appropriation of retained earnings. D) Appropriately classifying them as regular liabilities in the balance sheet E) None of the above. 4) Which of the following costs of goodwill should be capitalized and amortized? Developing Goodwill A) B) C) D) Yes No Yes No No No Yes Yes