Under the Consumption Method for Recording Supplies That Are Maintained

question 67

Multiple Choice

Under the consumption method for recording supplies that are maintained on a perpetual inventory system, the adjusting entry made at year end would affect which of the following accounts?

• A) Fund Balance-Nonspendable-Inventory of Supplies.
• B) Fund Balance-Restricted-Inventory of Supplies.
• C) Expenditures.
• D) Inventory of Supplies.

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Definitions:

Concept Test

A procedure in which marketing professionals ask consumers for their reactions to verbal descriptions and rough visual models of a potential product.

Idea Screening

The stage of new-product development in which the firm evaluates ideas to determine their fit within the new-product strategy.

Product Development

Product development is the complete process of bringing a new product or service to market, from idea conception, through design and manufacturing, to the final release and marketing.

New-Product Strategy Development

The stage of new-product development in which the company determines the direction it will take when it develops a new product.