Which of the Following Are Criteria for Determining Whether to Record

question 135

Multiple Choice

Which of the following are criteria for determining whether to record an asset as a fixed asset?

• A)must be tangible and an investment
• B)must be long lived and used by the company in its normal operations
• C)must be short lived and tangible
• D)must be an investment and long lived

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Definitions:

Total Manufacturing Costs

Includes all direct materials, direct labor, and manufacturing overhead costs incurred to produce finished goods.

Total Cost Of Goods Manufactured

The complete cost of producing goods during a specific period, including materials, labor, and overhead.

Accounting Cycle

For each accounting period, the process that begins with the recording of business transactions or procedures into a journal and ends with the completion of a post-closing trial balance.

Manufacturing Company

A type of company that produces finished goods from raw materials through the use of labor and machinery.