If the Supplies Account Is Not Adjusted

question 95

Multiple Choice

If the Supplies account is not adjusted:

• A)assets will be overstated and expenses will be understated.
• B)assets will be overstated and expenses will be overstated.
• C)assets will be understated and expenses will be overstated.
• D)assets will be understated and expenses will be understated.

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Definitions:

Fair Value

An approximate cost at which a transaction involving assets or liabilities might occur between informed and voluntary parties without any pressure.

Credit Balance

A situation in an account where the total credits exceed the total debits.

Consolidated Buildings

The combined value of all buildings and related facilities owned by a company as presented in its consolidated financial statements.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's success through dividends and capital appreciation.