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.
Answer: a. accounted for and reported like the operating losses of any other business.
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A contra account's normal balance (debit or credit) is the opposite of the normal balance of the related account
Indicate whether the statement is true or false
A husband prepared his own tax return as married filing separately. His wife hired a CPA to prepare her tax return as married filing separately and asked the CPA not to disclose the information to anyone. The CPA was not retained by the husband for any tax work. The husband believed that his wife's tax return was negligently prepared and that he was financially harmed. He hired an attorney, without his wife's consent, to pursue a negligence claim against the CPA. The CPA hired an attorney to defend against the negligence claim. To which party, if any, may the CPA disclose the wife's tax return information without the wife's consent?
A. The husband, for the evaluation of the negligence claim. B. The CPA's attorney, for the evaluation of the negligence claim. C. The husband's attorney, for the evaluation of the negligence claim. D. No one, because all disclosures must be made with the wife's consent.