The Entry to Adjust for the Cost of Supplies Used

question 198

Multiple Choice

The entry to adjust for the cost of supplies used during the accounting period is

• A) debit Supplies Expense; credit Supplies
• B) debit Stockholders' Equity; credit Supplies
• C) debit Accounts Payable; credit Supplies
• D) debit Supplies; credit Stockholders' Equity

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Definitions:

Liquidation Of Assets

This process involves converting assets into cash or cash equivalents by selling them, typically during the winding down or bankruptcy of a business.

Common Shareholders

Individuals or entities that hold common stock in a corporation, entitling them to dividends and voting rights, but placing them last in priority for company assets in case of liquidation.

Dissolve

To formally end or terminate an entity, such as a corporation, partnership, or marriage, through legal means.

Outstanding Common Shares

The total number of common shares of a corporation that are issued and currently held by shareholders.