Which of the Following Properly Describes the Impact on the Financial

question 124

Multiple Choice

Which of the following properly describes the impact on the financial statements when a company purchases and pays $8,000 for supplies inventory,of which $2,000 remains unused at the end of the period?

• A)Net income decreased $6,000.
• B)Cash decreased $6,000.
• C)Net income decreased $8,000.
• D)Cash decreased $2,000.

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Definitions:

Debtor Relief

Legal measures or frameworks aimed at providing assistance or relief to those who are unable to pay their debts.

1994 Amendments

Refers to specific modifications made to legislation or legal documents in the year 1994.

Chapter 11

A provision in the U.S. Bankruptcy Code that allows businesses and individuals to reorganize their debts in order to pay back creditors over time.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party under the terms of a trust agreement.