Which of the Following Statement(s)is (Are)correct? I

question 117

Multiple Choice

Which of the following statement(s) is (are) correct? I.It is easy to distinguish the balance sheet of a company that uses a process costing system from that of a company that uses job-order costing
II) A process costing system requires a Work in Process account for each processing department,while a job-order costing system uses a single Work in Process account
III) Process costing systems use multiple Finished Goods Inventory accounts

• A) I only
• B) II only
• C) II and III
• D) I, II, and III

---

Definitions:

Financing Activities

Transactions and events where cash is raised or repaid to investors and creditors, such as issuing shares or borrowing loans.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Treasury Stock

Shares that were issued by a company and then repurchased, reducing the amount of outstanding stock on the open market.

Operating Activities

Refers to the primary revenue-generating activities of a business, such as sales, service, and associated costs, which are reported in the cash flow statement.