The Entry to Adjust for the Cost of Supplies Used

question 10

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 Owner Capital; credit Supplies
• C) debit Accounts Payable; credit Supplies
• D) debit Supplies; credit Owner Capital

---

Definitions:

Optimal Consumption Bundle

The combination of goods and services that maximizes a consumer's utility for a given income and prices, based on their preferences.

Budget Line

A visual representation showcasing every possible pair of two products that can be bought within a specific budget.

Indifference Curves

Indifference curves represent combinations of goods or services that provide the same level of satisfaction to the consumer, illustrating consumer preferences and consumption choices.

Utility Levels

Refers to the subjective satisfaction or happiness that a consumer derives from consuming goods and services.