If Supplies That Have Been Purchased Are Used in the Course

question 127

Multiple Choice

If supplies that have been purchased are used in the course of business, then

• A) a liability will increase.
• B) an asset will increase.
• C) stockholders' equity will decrease.
• D) stockholders' equity will increase.

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Definitions:

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time.

Compounded Monthly

Interest calculation method where the accumulated interest is added to the principal amount every month, allowing the interest in the next month to be calculated on the increased total.

Interest

Interest is the charge for borrowing money, typically expressed as a percentage of the principal amount per year.

Deposits

Funds placed into an account in a bank or other financial institution for safekeeping.