If Supplies Are Recorded as Assets When Purchased, the Credit

question 102

Multiple Choice

If supplies are recorded as assets when purchased, the credit to supplies in the adjusting entry is for the amount of supplies

• A)remaining.
• B)purchased.
• C)used.
• D)purchased less the amount used.

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Definitions:

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the price signals created through the forces of supply and demand.

Public Good

A public good is a product or service that is non-excludable and non-rivalrous, meaning it can be consumed by anyone without reducing its availability to others.

Nonexcludability

A characteristic of public goods where it is not feasible to exclude individuals from using the good or benefiting from it.

Nonrivalry

A characteristic of certain goods where one person's consumption does not reduce availability to others, often associated with public goods.