At the Beginning of the Period,the Supplies Account Has a Balance

question 73

Multiple Choice

At the beginning of the period,the Supplies account has a balance of $500.At the end of the period,the balance in the account was $275.The adjusting entry would be:

• A)debit Supplies Expense,$275;credit Supplies,$275.
• B)debit Supplies,$275;credit Supplies Expense,$275.
• C)debit Supplies Expense,$225;credit Supplies,$225.
• D)debit Supplies,$225;credit Supplies Expense,$225.

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Definitions:

Life Cycle Hypothesis

An economic theory suggesting that individuals plan their consumption and savings behavior over their lifetime, aiming for a stable level of consumption.

Permanent Income Hypothesis

The theory that an individual's consumption patterns are based on their long-term income expectations rather than their current income.

Income Distribution

How wealth and income are shared among a population, often analyzed for insights into economic inequality.

Minimum-wage Laws

Legislation that sets the lowest legal wage that can be paid to workers, aiming to ensure a minimum standard of living for employees.