Which Statement Is NOT True Regarding the Sales Method of Accounting

question 52

Multiple Choice

Which statement is NOT true regarding the sales method of accounting for byproducts.

• A)the method makes no journal entries until the byproduct is sold
• B)this method is the preferred method because of the matching principle
• C)revenues of the byproduct can be recorded in the income statement as revenue
• D)revenues of the byproduct can be recorded as a reduction of cost of goods sold in the income statement

Understand the criteria and considerations for something to serve as money.

Understand the concepts and techniques of capital budgeting, including net present value, internal rate of return, and payback period.

Identify and calculate relevant costs, including sunk costs, opportunity costs, and incremental costs in decision-making.

Understand the impact of depreciation on capital budgeting decisions.

---

Definitions:

Currency Market

Also known as the foreign exchange market (Forex), it's a decentralized global market where currencies are traded, determining the foreign exchange rates for every currency.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Direct Exchange Rate

The amount of domestic currency required to buy one unit of a foreign currency.

Canadian Dollar

The currency of Canada, symbolized by CAD, and often represented by the dollar sign $, or C$ to differentiate it from other dollar-dominated currencies.