The Policy at Adler Corporation Is to Expense All Office

question 81

Multiple Choice

The policy at Adler Corporation is to expense all office supplies at the time of purchase.On the last day of the accounting period there are $1100 of unused office supplies on hand and the balance of supplies expense is $3500.What should the accountant do?

• A)Increase Supplies and decrease Supplies Expense for $1100.
• B)Nothing company policy says to expense supplies when purchased.
• C)Convince management to change its policy to avoid problems in the future.
• D)Increase Supplies Expense for $2400 and decrease Supplies for $2400.

Recognize the effects of stock splits and dividends on company's equity and per share values.

Differentiate between the rights and privileges of preferred stockholders versus common stockholders.

Comprehend the basic accounting for issuance and repurchase of company's own shares.

Understand the declaration, payment, and impact of dividends on a company’s financial position.

---

Definitions:

Orbicularis Oculi

The orbicularis oculi is a muscle surrounding the eyelid that allows for the closing of the eye.

Sandstorm

A meteorological phenomenon characterized by strong winds lifting and transporting sand and dust from the ground, reducing visibility.

Melanin Pigment

A natural pigment found in most organisms, responsible for hair, skin, and eye color; provides protection against UV radiation.

Choroid

A layer of blood vessels and connective tissue between the sclera and retina in the eye, providing oxygen and nourishment to the outer layers of the retina.