Costs assigned to the building of a ship should appear on the income statement when
A)the ship is completed.
B)the ship is sold.
C)the purchase order to manufacture the ship is received.
D)cash is collected for the sale of the ship.

Question

Quizplus · Accepted Answer

Costs assigned to the building of a ship should appear on the income statement when the ship is sold. This is because the costs are capitalized as part of the ship's construction and then expensed as cost of goods sold upon sale, matching the expense with the revenue it generates.

Costs Assigned to the Building of a Ship Should Appear