On June 1,Stackable,Inc

question 165

Multiple Choice

On June 1,Stackable,Inc.has a balance of $6,000 in Supplies.During June,the company buys another $2,000 of supplies.On June 30,the company counts the supplies and finds that $800 are left unused.What is the proper adjustment at June 30?

• A)Decrease Supplies and shareholders' equity by $7,200.
• B)Decrease Supplies and shareholders' equity by $8,000.
• C)Decrease Cash and increase Supplies by $2,000.
• D)Decrease Cash and increase Accounts payable by $7,200.

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Definitions:

Writing

The process of using symbols, typically letters of the alphabet, to communicate thoughts and ideas in a readable form.

Court Waive

A judicial decision to relinquish or forego certain legal rights, fees, or penalties, often in the interest of justice or to facilitate legal processes.

Requirement Of Writing

A legal principle that certain types of contracts or agreements must be in writing to be enforceable.

Restraint Of Trade

Legal provisions that limit or restrict business activities in order to prevent unfair competition or monopolistic practices.