If the Adjustment for Supplies Used During the Period Was

question 19

Multiple Choice

If the adjustment for Supplies used during the period was NOT made:

• A) expenses would be too low.
• B) assets would be too low.
• C) expenses would be too high.
• D) revenue would be too low.

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Definitions:

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.

Intrastate Trucking Company

A company that operates trucks only within the boundaries of a single state, not crossing any state lines.

Lost In A Fire

Describes items, possessions, or assets that have been destroyed or severely damaged due to a fire incident.