A Company Started the Year with $400 of Supplies

question 8

Multiple Choice

A company started the year with $400 of supplies.During the year,the company purchased an additional $1,200 of supplies.There were $700 of supplies on hand at the end of the year.An adjusting entry prepared at the end of the accounting period includes a:

• A)debit to Supplies for $800.
• B)debit to Supplies for $700.
• C)debit to Supplies Expense for $900.
• D)debit to Supplies Expense for $600.

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Definitions:

Social Contract Orientation

A theory in moral and political philosophy that examines the hypothetical understanding that individuals might agree to, forming the basis of societal rules and obligations.

Universal Ethical Principles

Moral principles that are considered to be universally applicable and foundational to ethical decision-making, such as justice, equality, and respect for human dignity.

Post Conventional Reasoning

A stage of moral development in which individuals make ethical decisions based on their own principles and values rather than external norms or rules.

Conventional Reasoning

A stage of moral development where individuals make judgments based on conventional standards of right and wrong.