Financial reporting by a development stage enterprise differs from financial reporting for an established operating enterprise in regard to footnote…

Choice "a" is correct. Financial reporting by a development stage enterprise differs from financial

reporting for an established operating enterprise in regard to (more extensive) footnote disclosures

only.

Choices "b", "c", and "d" are incorrect. Revenue and expense recognition principles are the same.

Rule: Development stage enterprises should present financial statements in accordance with GAAP

and make additional disclosures such as: cumulative net losses, cumulative deficit (as part of equity),

cumulative sales and expenses (as part of the income statement), cumulative statement of cash

flows and supplementary "shareholders equity."