Jackson Discount Service Company Had a Balance of $7000 in Its

question 192

Multiple Choice

Jackson Discount Service Company had a balance of $7000 in its Supplies account and a zero balance in Supplies Expense at December 31 (prior to adjustment) .A physical count of the supplies at that date determined that supplies with a cost of $1300 were on hand.If the following tabular analysis is used Jackson Company will: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+\underline{ \text { Stockholders' Equity} }\end{array}$

$\begin{array}{c}\begin{array}{l}\\\underline{\text { Supplies }}=\\\end{array}\begin{array}{c}\text {common}\\ \underline{\text {Stock}}\\\end{array}\begin{array}{l}\\\underline{\text {Revenue }} -\\\end{array}\begin{array}{lll}\\\underline{\text {Expense}} - \\\end{array}\begin{array}{lll}\\\underline{\text { Div. }}\\\end{array}\end{array}$

• A)Increase the Supplies account balance by $1300
• B)Increase the Supplies Expense account balance by $1300
• C)Decrease the Supplies account balance by $5700
• D)Decrease the Supplies Expense account balance by $5700

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Definitions:

Numerical Ability

The capacity to reason, solve problems, and work with numbers; includes basic arithmetic skills, statistical analysis, and the ability to identify relationships between numbers.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

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The measure of an individual's age based on the calendar date of their birth, often used as a general indicator of physical and developmental stages.