Costs Assigned to the Building of a House Should Appear

question 29

Multiple Choice

Costs assigned to the building of a house should appear on the income statement when

• A) the house is completed.
• B) the house is sold.
• C) the purchase order to manufacture the house is received.
• D) cash is collected for the sale of the house.

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Definitions:

Chancellor

A high-ranking official in certain legal or educational institutions, or a judge in courts of equity.

Juror

A member of a jury, which is a group of people called to render a verdict in a legal case based on evidence presented during a trial.

Appellee

The party against whom an appeal is taken—that is, the party who opposes setting aside or reversing the judgment. Sometimes referred to as the respondent.

Appeal

The process of seeking a higher court’s review of a lower court’s decision for the purpose of correcting or changing the lower court’s judgment or decision.