Which of the following statements concerning product costs versus general,selling,and administrative costs is false?
A) Product costs incurred during the period will initially appear as inventory on the balance sheet.
B) General, selling, and administrative costs are always expensed when paid.
C) Product costs may be divided between the balance sheet and income statement.
D) General, selling, and administrative costs never appear as inventory on the balance sheet.

Question

Quizplus · Accepted Answer

General, selling, and administrative costs may be expensed when paid, but they may also be capitalized and appear on the balance sheet as prepaid expenses or other assets. Therefore, statement B is false.

Which of the Following Statements Concerning Product Costs Versus General,selling,and