Use This Information to Answer the Following Question

question 204

Multiple Choice

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

• A) credit to Supplies for $40.
• B) credit to Supplies Expense for $260.
• C) debit to Supplies Expense for $260.
• D) debit to Supplies for $40.

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Definitions:

Functional Currency

The primary currency used by a business or entity in its financial operations and reporting.

Current Monetary Assets

Assets held by a company that are in the form of cash or can be easily converted into cash within a short period, typically one year.

Total Liabilities and Equity

The sum of all liabilities (what a company owes) plus the owners' equity (the original investment plus any retained earnings).

Exchange Rates

The rate at which one currency can be exchanged for another, affecting international trade and investments.