Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 4)
What is the result of the adjusting entry to record the use of office supplies during an accounting period?
Increase assets and increase equity.
Decrease assets and increase expenses.
Increase assets and decrease expenses.
Decrease liabilities and decrease expenses.
Explanation
When supplies are used, supplies expense increases (debit) and supplies asset decreases (credit).
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