Myron Is a Barber Who Does His Own Accounting for His

question 65

Multiple Choice

Myron is a barber who does his own accounting for his shop. When he buys supplies he routinely debits Supplies Expense. Myron purchased $\$ 1,500$ of supplies in January and his inventory at the end of January shows $\$ 600$ of supplies remaining. What adjusting entry should Myron make on January 31?

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Definitions:

Rate Of Return

A financial ratio that calculates the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Market Opportunities

Situations in which a company can meet an unsatisfied demand or can add unique value that customers will pay for in a particular market.

Qualitative Characteristic

Aspects that help evaluate or analyze non-quantifiable properties of financial information, such as relevance and reliability.