On January 1, Smith Had $2,000 of Supplies on Hand

question 5

True/False

On January 1, Smith had $2,000 of supplies on hand. During January, Smith purchased $4,000 worth of new supplies. At the end of the month, a count revealed $1,000 worth of supplies remaining on the shelves. The adjustment entry needed will include a debit to Supplies Expense of $5,000. The supplies were initially recorded as an asset.

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Definitions:

Flexible Benefit Plans

A benefits plan that allows employees to choose from a range of options, tailoring their benefits package to their specific needs.

Organizational Efficiency

Measures how effectively an organization utilizes its resources (time, money, personnel) to achieve its goals without waste.

Goal Setting

The method of pinpointing objectives that are specific, measurable, attainable, pertinent, and limited by time for successful accomplishment.

Different Reward Programs

Various schemes or plans designed to motivate and compensate employees or participants, often including financial incentives, benefits, or non-material recognitions.