A Company Usually Determines the Amount of Supplies Used During

question 104

Multiple Choice

A company usually determines the amount of supplies used during a period by

• A) adding the supplies on hand to the balance of the Supplies account.
• B) summing the amount of supplies purchased during the period.
• C) taking the difference between the supplies purchased and the supplies paid for during the period.
• D) taking the difference between the balance of the Supplies account and the cost of supplies on hand.

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Definitions:

Cumulative Feature

A characteristic of preferred stock that entitles shareholders to receive dividends that were omitted in the past before any dividends can be issued to common stockholders.

Preemptive Right

A shareholder's right to maintain their proportionate ownership by buying additional shares before they are offered to the public.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily match the market value.

Legal Capital

The minimum amount of capital that a company is required to maintain by law, often to protect creditors from the company's potential losses.