Which of the Following Would Be the Effect of a Transaction

question 159

Multiple Choice

Which of the following would be the effect of a transaction to expense Supplies for the period?

• A)Increase Supplies, Decrease Supplies expense.
• B)Increase Supplies, Decrease Cash.
• C)Increase Supplies expense, Decrease Cash.
• D)Decrease Supplies expense, Decrease Cash.
• E)Increase Supplies expense, Decrease Supplies.

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Definitions:

Utility

The usefulness or value that a product, service, or action provides to individuals or organizations.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as administrative overheads.

Developmental Costs

The expenses associated with the creation and implementation of projects, programs, or products, including research, design, and training programs.

Overhead Costs

Expenses that are not directly tied to production or operations, such as rent, utilities, and management salaries, necessary for running a business.