At the end of the month, the adjusting journal entry to record the use of supplies should include: A) A debit to supplies inventory and a credit to expenses. B) A credit to supplies inventory and a debit to expenses. C) A debit to supplies inventory and a credit to revenue. D) A credit to supplies inventory and a debit to cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the end of the month, the adjusting journal entry to record the use of supplies should include:

 


  1. A) A debit to supplies inventory and a credit to expenses.   
                B) A credit to supplies inventory and a debit to expenses.
                C) A debit to supplies inventory and a credit to revenue.
                D) A credit to supplies inventory and a debit to cash.
  2. One major difference between deferral and accrual adjustments is:



    1. A) deferral adjustments involve previously recorded transactions and accruals involve new transactions. 
                  B) deferral adjustments are made after taxes and accrual adjustments are made before taxes.
                  C) deferral adjustments are made annually and accrual adjustments are made monthly.
                  D) deferral adjustments are influenced by estimates of future events and accrual adjustments are not.
                 
  3. One major difference between deferral and accrual adjustments is:



    1. A) accrual adjustments are influenced by estimates of future events and deferral adjustments are not.       
                  B) deferral adjustments are made before taxes and accrual adjustments are made after taxes.
                  C) deferral adjustments are made monthly and accrual adjustments are made annually.
                  D) accounts affected by an accrual adjustment always go in the same direction (i.e., both accounts are increased or both accounts are decreased) and accounts affected by a deferral adjustment always go in opposite directions



               

 

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