For Product Costs Associated with a Particular Product to Be

question 28

Multiple Choice

For product costs associated with a particular product to be reported on the income statement:

• A)The product must be transferred to Finished Goods Inventory.
• B)The product must still be in Work in Process Inventory.
• C)The product must be sold.
• D)The product may be in any of the manufacturer's inventory accounts.
• E)The company must expect to sell the product during the next twelve months.

---

Definitions:

Liquidating Dividend

A type of dividend paid by a corporation to its shareholders during its liquidation, distributing the remaining assets among the shareholders.

Sale

The exchange of goods or services for money, constituting a fundamental economic activity.