Which of the Following Statements About Period Costs Is True

question 107

Multiple Choice

Which of the following statements about period costs is true?

• A)Most period costs are expensed in the period the costs are incurred.
• B)Period costs are expensed when the products associated with these costs are sold.
• C)Period costs are usually recorded as assets.
• D)Period costs do not adhere to the matching principle.

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Definitions:

Article 2(A)

Generally refers to a specific section within a broader legal document or statute, often needing context for precise definition.

Lease

A contractual agreement where one party (the lessee) is granted the right to use property owned by another party (the lessor) for a specified period in exchange for periodic payments.

Exist Physically

To have a presence or form that can be touched, seen, or felt in the material world.

Minerals

Naturally occurring inorganic substances with a definite chemical composition and, usually, a distinct crystalline form.