Which of the Following Statements Is Correct

question 27

Multiple Choice

Which of the following statements is correct?

• A)Accumulated Depreciation--Equipment is presented in the Liabilities section of a balance sheet.
• B)The cost of supplies used is reported on the statement of owner's equity.
• C)The cost of supplies used represents an operating expense of the business.
• D)At the time of their acquisition, prepaid expenses are recorded in expense accounts.

---

Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.