Select the Appropriate Classification for Each of the Following Costs

question 72

Multiple Choice

Select the appropriate classification for each of the following costs.
-Supplies for factory washroom

• A)Period
• B)Product

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Definitions:

Accounting Equation

The fundamental formula in accounting that states that assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the business.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Liabilities

Financial obligations or debts owed by a business to others, including loans, accounts payable, and mortgages.