Which of the following statements is true of the production method of accounting for byproducts?
A) It makes no journal entries until the byproduct is sold.
B) It is the preferred method because of the matching principle.
C) It records revenues of the byproduct in the income statement as revenue.
D) It adds revenues of the byproduct to the cost of goods sold in the income statement.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true of the production method of accounting for byproducts?
A) It makes no journal entries until the byproduct is sold.
B) It is the preferred method because of the matching principle.
C) It records revenues of the byproduct in the income statement as revenue.
D) It adds revenues of the byproduct to the cost of goods sold in the income statement.

Which of the Following Statements Is True of the Production