Adjusting Entries: Supplies Video Lessons

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Problem: A company purchased with cash supplies that will be consumed during future months. Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months? A. Total assets will remain unchanged. B. Total assets will decrease. C. Operating expenses will increase. D. Operating income will decrease.

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Problem Details

A company purchased with cash supplies that will be consumed during future months. Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months?

A. Total assets will remain unchanged.

B. Total assets will decrease.

C. Operating expenses will increase.

D. Operating income will decrease.

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