During Bruce Company's First Year of Operations, the Company Purchased

question 57

Multiple Choice

During Bruce Company's first year of operations, the company purchased $2,600 of supplies. At year-end, a physical count of the supplies on hand revealed that $975 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements?

• A)Expenses will increase and assets will decrease by $1,625.
• B)Assets and expenses will both increase by $975.
• C)Expenses and assetswill both increase by $1,625.
• D)The related adjusting entry has no effect on net income or the accounting equation.

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Definitions:

Unconscious Drives

Deep-seated motivations or impulses within an individual's psyche that influence behaviors and thoughts without the individual's conscious awareness.

Instinct-Based View

A perspective in psychology that attributes certain behaviors and reactions to innate instincts.

Unconscious Motivation

Refers to the driving forces behind an individual's actions and thoughts that are not within their conscious awareness.

Reinforcement-Centered View

A perspective in psychology that emphasizes learning behaviors through the rewards and punishments received as consequences of those behaviors.