Which of the Following Statements Is True of the Sales

question 17

Multiple Choice

Which of the following statements is true of the sales method of accounting for byproducts?

• A) It makes journal entries when the byproducts are produced.
• B) It is the preferred method because of the matching principle.
• C) It allows a firm to manage its reported earnings by timing the sale of byproducts.
• D) This method recognizes the byproduct inventory in the accounting period in which it is produced.

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