The Supplies Account Shows a Beginning Balance of $3,000

question 148

Multiple Choice

The supplies account shows a beginning balance of $3,000. Assume the supplies account shows an entry as a debit for $5,500 representing supplies purchased during the period and the supplies inventory at year end is $1,700. The adjusting entry involves a:

• A)debit to supplies expense for $6,800.
• B)debit to supplies for $6,800.
• C)debit to supplies expense for $1,700.
• D)debit to supplies for $1,700.

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Definitions:

Reporting Unusual Items

The practice of separately reporting significant financial transactions or events that are not typical of the business's regular operations, to provide clarity in financial statements.

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits/losses over a specific period of time.

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, indicating its financial health.

Dividend Yield

A profitability ratio that measures the rate of return to common stockholders from cash dividends, computed by dividing the dividends per share of common stock by the market price per share of common stock.