Which of the Following Is TRUE Regarding the Accounts Supplies

question 17

Multiple Choice

Which of the following is TRUE regarding the accounts supplies payable and supplies expense?

• A)These account titles both mean the same thing and are used interchangeably.
• B)Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of the supplies which have been paid for.
• C)Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of supplies used to deliver goods or services to customers.
• D)Supplies expense represents the cost of supplies bought on account but not yet paid for, while supplies payable represents the cost of supplies used to deliver goods or services to customers.

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Definitions:

Maturity Risk Premium

The additional return that investors demand for holding a bond until its maturity due to the potential for a change in the value over time.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the minimum at which shares can be issued.

Coupon Paid Semiannually

A bond payment made twice a year, representing the interest owed to bondholders.

Annual Coupon

The yearly interest payment made to bondholders, usually fixed and expressed as a percentage of the bond's face value.