A Business Purchased $200 of Supplies on Account and Recorded $$\begin{array} { | l | r | r | } \hline \text { Supplies } & 200 & \\\hline \text { Accounts payable } & & 200 \\\hline\end{array}$$

question 148

Multiple Choice

A business purchased $200 of supplies on account and recorded the following journal entry: $$\begin{array} { | l | r | r | } \hline \text { Supplies } & 200 & \\\hline \text { Accounts payable } & & 200 \\\hline\end{array}$$ Which of the following sets of ledger accounts reflect the posting of this transaction?

• A)
• \(\begin{array}{l|l}
• {\text { Supplies }} \\
• \hline & 200
• \end{array}\)\(\begin{array}{l}
• \text { Accounts payable }\\
• \begin{array}{r|r}
• \hline 200 &
• \end{array}
• \end{array}\)
• B)
• \(\begin{array}{l|l}
• {\text { Supplies }} \\
• \hline 200&
• \end{array}\)\(\begin{array}{l}
• \text { Accounts payable }\\
• \begin{array}{r|r}
• \hline 200 &
• \end{array}
• \end{array}\)
• C)
• \(\begin{array}{l|l}
• {\text { Supplies }} \\
• \hline 200&
• \end{array}\)\(\begin{array}{l}
• \text { Accounts payable }\\
• \begin{array}{r|r}
• \hline &200 &
• \end{array}
• \end{array}\)
• D)
• \(\begin{array}{l|l}
• {\text { Supplies }} \\
• \hline &200&
• \end{array}\)\(\begin{array}{l}
• \text { Accounts payable }\\
• \begin{array}{r|r}
• \hline &200 &
• \end{array}
• \end{array}\)

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Definitions:

Mineral Rights

Legal entitlements that grant the holder the ability to mine, extract, or exploit minerals from the land.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Straight-Line Method

A process for figuring out depreciation or amortization by spreading the asset’s price evenly over its operational life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value over time.