A Total of $3,700 in Supplies Was Purchased During the Year

question 36

Multiple Choice

A total of $3,700 in supplies was purchased during the year. By the end of the year, the company had used $2,200 of the supplies. The adjusting entry needed at the end of the year is:

• A)debit Supplies $2,200; credit Supplies Expense $2,200
• B)debit Supplies Expense $3,700; credit Supplies $3,700
• C)debit Supplies Expense $1,500; credit Supplies $1,500
• D)debit Supplies Expense $2,200; credit Supplies $2,200

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Definitions:

Return on Investment

A measurement of the gain or loss generated on an investment relative to the amount of money invested.

Residual Income

A measure of profit that exceeds the minimum required return on an investment or business venture.

Percentage

A proportion or share in relation to a whole, typically expressed as a fraction of 100.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to revenue.