Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?

• A) Product costs affect only the balance sheet.
• B) Product costs affect only the income statement.
• C) Period costs affect only the balance sheet.
• D) Neither product costs nor period costs affect the Statement of Retained Earnings. This can also be a true statement if the period costs were prepaid (i.e., prepaid advertising, depreciation).
• E) Product costs eventually affect both the balance sheet and the income statement.

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Definitions:

Hostility

Feelings of anger and frustration.

Heart Disease

A broad term for various conditions affecting the heart's structure and function, leading to health complications.

Inflammation

When bodily tissues swell in response to a perceived or real threat.

Swell

A term often used to describe a long wave on the water's surface that has traveled a great distance.