A Company Usually Determines the Amount of Supplies Used During

question 28

Multiple Choice

A company usually determines the amount of supplies used during a period by

• A)adding the supplies on hand to the balance of the Supplies account.
• B)totalling the amount of supplies purchased during the period.
• C)taking the difference between the supplies purchased and the supplies paid for during the period.
• D)taking the difference between the balance of the Supplies account and the cost of supplies on hand.

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Definitions:

Investments

Assets acquired with the goal of generating income or increasing in value over time.

Statement Of Owner's Equity

A financial statement detailing changes in the equity of a company's owner over a reporting period.

Capital Changes

Adjustments or alterations in the equity or ownership capital of a company, often due to investments, dividends, or profits.

Accounting Period

A specific period of time for which financial activities are recorded and reported, such as a month, quarter, or year.