During Bruce Company's First Year of Operations, the Company Purchased

question 6

Multiple Choice

During Bruce Company's first year of operations, the company purchased $2,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $825 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements?

• A)Expenses will increase and assets will decrease by $1,475.
• B)Assets and expenses will both increase by $825.
• C)Expenses and assets will both increase by $1,475.
• D)The related adjusting entry has no effect on net income or the accounting equation.

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Definitions:

Autopsy

A postmortem examination to discover the cause of death or the extent of disease.

Closed-head Injuries

A type of traumatic brain injury where the skull remains intact but the brain is damaged due to a blow to the head or rapid acceleration/deceleration.

Temporal Lobes

Portions of the brain located beneath the temples, responsible for processing hearing, memory, and speech, among other functions.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, language, planning, and judgment.