Reference no: EM132825156

Problem 1: What are product cost matched directly with sales revenue?

A.) In the period immediately following the purchase

B.) In the period immediately following the sale

C.) When the merchandise is purchased

D.) When the merchandise is sold

Problem 2: What type of account is the Cost Goods Sold account?

A.) Liability

B.) Asset

C.) Contra asset

D.) Expense

Problem 3: 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 associates with these costs are sold.

C.) Period costs are usually recorded as assets.

D.) Period costs do not adhere to the matching principle.