When By-Product Value Is Recognized at the Time of Sale

question 115

Multiple Choice

When by-product value is recognized at the time of sale, the journal entry can include a credit to:
I. Sales revenue
II. Other income
III. Cost of goods sold
IV. Work in process

• A) I, II, or IV only
• B) II, III, or IV only
• C) I, II, or III only
• D) I, III, or IV only

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Definitions:

SYD Calculations

Sum-of-Years' Digits method, a form of accelerated depreciation where depreciation is higher in the earlier years of an asset's life.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.

Operating Cash Flow

The cash generated by a company’s normal business operations, indicating whether the company can maintain and grow its operations.

Sales Revenues

Income received from selling goods or services over a period of time before any costs or expenses are deducted.