213. Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

a. true
b. false

209.. A product cost is:

a. expensed in the period in which it is incurred

b. shown on the income statement with the operating expenses

c. expensed in the period the product is sold

d. shown with current liabilities on the balance sheet

202. Indirect labor and indirect materials are classified as:

a. factory overhead and product costs

b. operating costs and period costs

c. operating costs and product costs

d. factory overhead and period costs

197. Generally accepted accounting principles (GAAP) require the use of fair value accounting for all assets and liabilities.

a. true
b. false

194. Costs on the income statement for both a merchandiser and a manufacturer would include:

a. cost of goods manufactured

b. operating expenses

c. direct labor incurred

d. direct materials

191. Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $45 a share plus brokerage fees of $280. The entry for the purchase is:

a. Stock Investments - Saxton Company 4,500 Cash 4,500

b. Cash 4,500 Stock Investments - Saxton Company 4,500

c. Stock Investments - Saxton Company 4,780 Cash 4,780

d. Stock Investments - Saxton Company 4,500 Brokerage Fee Expense 280 Cash 4,780

185..

Work in Process, Beginning	$14,000
Work in Process, Ending	$20,000
Direct Labor costs incurred	$ 4,000
Cost of Goods Manufactured	$ 8,000
Factory Overhead	$ 8,000

What is the amount of Direct Materials used?

a. $2,000

b. $14,000

c. $4,000

d. $8,000