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.

---

Definitions:

In-Process Goods

Items that are currently in the production process but not yet completed.

External Failure Cost

Expenses incurred from products not meeting quality criteria post-delivery, encompassing returns, repairs, and warranty filings.

Quality Cost Report

A quality cost report is a financial analysis detailing the costs associated with preventing, detecting, and correcting defective work in a company.

Returns And Allowances

A reduction in sales revenue due to customers returning products or receiving allowances for defective or unsatisfactory goods.