Supplies Are Recorded as Assets When Purchased

question 150

Multiple Choice

Supplies are recorded as assets when purchased.Therefore, the credit to supplies in the adjusting entry is for the amount of supplies:

• A)remaining.
• B)purchased.
• C)used.
• D)either used or remaining.

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.

Unlimited Liability

Unlimited liability means that the owners of a business are personally responsible for the entire amount of debt and obligations of the business, potentially risking their personal assets.