Which of the following would be the effect of a transaction to expense Supplies for the period?
A) Increase Supplies, Decrease Supplies expense
B) Increase Supplies expense, Decrease Cash
C) Increase Supplies, Decrease Cash
D) Increase Supplies expense, Decrease Supplies
E) Decrease Supplies expense, Decrease Cash

Question

Quizplus · Accepted Answer

Expensing supplies for the period means recognizing the cost of supplies used during the period as an expense. This decreases the Supplies account (as the supplies are no longer available for future use) and increases the Supplies Expense account (reflecting the cost of supplies used in generating revenue).

Which of the Following Would Be the Effect of a Transaction