Which of the Following Is an Example of a Period

question 215

Multiple Choice

Which of the following is an example of a period cost when manufacturing products?

• A)Depreciation expense on factory equipment
• B)Advertising expense
• C)Indirect materials used in the factory
• D)Property taxes on the plant

---

Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and stockholders' equity at a specific point in time.

Equity Method

An accounting technique used by companies to assess their investments in other companies, where the investment's carrying value is adjusted to reflect the investor's share of the investee's income or losses.

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually in the form of cash.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of an acquired company's identifiable assets and liabilities.