At January 1,Smith Has $1,200 of Supplies on Hand

question 126

True/False

At January 1,Smith has $1,200 of supplies on hand.During January,Smith purchases $3,000 worth of new supplies.At the end of the month,a count reveals $500 worth of supplies remaining on the shelves.The adjustment entry needed will include a debit to Supply expense of $3,700.

---

Definitions:

Efficient Allocation

The process where resources are distributed in a manner that maximizes the net benefits attained through their use.

Socialist Economy

An economic system where the production, distribution, and exchange of goods and services are controlled by the government with the aim of reducing inequality.

Public Ownership

The ownership of assets by the government or public entities rather than by private individuals or companies.

Productive Resources

The factors required for the production of goods and services, usually classified into land, labor, capital, and entrepreneurship.