The Supplies Account for Vulcan Cleaning Services Had a Debit

question 140

Essay

The Supplies account for Vulcan Cleaning Services had a debit balance of $200 at the beginning of the month.Additional supplies of $1,400 were purchased during the month.A physical count of supplies revealed that $600 of supplies was still on hand at the end of the month.What was total Supplies expense for the month?
A) $1,400
B) $100
C) $1,000
D) $600

• A) $1,400
• B) $100
• C) $1,000
• D) $600

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus any accumulated depreciation, representing the actual value of the company's fixed assets.

Sales

The exchange of goods or services for money, representing the primary revenue generating activity of a business.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales, calculated by dividing total sales by the average total assets.

Efficiently

The method of achieving a goal or completing a task with the least waste of time and effort.