At the End of the Month,the Adjusting Journal Entry to Record

question 3

Multiple Choice

At the end of the month,the adjusting journal entry to record the use of supplies would include:

• A)A debit to supplies and a credit to expenses.
• B)A credit to supplies and a debit to expenses.
• C)A debit to supplies and a credit to revenue.
• D)A credit to supplies and a debit to cash.

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Definitions:

Social Security Surplus

The excess funds collected through Social Security taxes over the amounts paid out as benefits.

Billion

A numerical value equivalent to 1,000 million, often used to denote a very large quantity or amount in financial and statistical contexts.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen, representing the benefits one misses out on when making a decision.

Excess Capacity

Excess capacity refers to a situation where a company is operating below its maximum output level, indicating that it can produce more with the current resources if there is higher demand.