The Unadjusted Trial Balance Columns of a Company's Work Sheet

question 8

Multiple Choice

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

• A) $325 debit.
• B) $325 credit.
• C) $425 debit.
• D) $750 debit.
• E) $750 credit.

---

Definitions:

Accounts

Accounts generally refer to the records of financial transactions and positions related to assets, liabilities, equity, revenues, and expenses.

Balances

The amounts remaining in various accounts, such as bank accounts or ledger accounts, at a certain point in time.

December 31

December 31 typically refers to the last day of the year in the Gregorian calendar, often associated with year-end financial statements and tax considerations.

Balance Sheet

A financial report detailing a company's assets, liabilities, and owners' equity at a given moment, offering an overview of its financial health.