At March 31, the Amount of Supplies on Hand Is

question 24

Multiple Choice

At March 31, the amount of supplies on hand is $520. What amount is reported in the January income statement for supplies expense?

• A) $1,300.
• B) $0.
• C) $520.
• D) $780.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before taxes and interest costs are deducted.

Sold Units

The total number of units of a product that have been sold within a specific time period.

Variable Expenses

Expenses that vary directly with changes in business activity level, such as sales volume or production quantity.

Fixed Expenses

Expenses that remain constant regardless of any variations in the volume of production or sales.