If Supplies Has a $180 Unadjusted Balance at December 31

question 54

Multiple Choice

If Supplies has a $180 unadjusted balance at December 31 2022 and supplies on hand are $40 the year-end adjustment would contain a(n) :

• A)increase to Supplies for $40.
• B)decrease to Supplies for $40.
• C)increase to Supplies Expense for $140.
• D)decrease to Supplies Expense for $140.

Understand the distinctions between internal and external users of financial information.

Articulate the importance and implication of key accounting concepts such as objectivity, unit of measure, and the cost concept.

Demonstrate an understanding of the types of businesses (service, merchandising, manufacturing) and their characteristic operations.

Analyze the ethical considerations in corporate accounting practices.

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Definitions:

Capital Balance

Represents the amount of capital contributed by investors or owners, plus retained earnings minus any distributions or withdrawals.

Interest

The cost paid for borrowing money, typically expressed as a percentage rate over the period of borrowing.

Profit Distribution

The process of allocating a company's profits among its shareholders, typically in the form of dividends.

Withdrawals

Withdrawals refer to the act of taking out cash or assets from a business by its owners for personal use, impacting the owner's equity.