If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.

Question

Quizplus · Accepted Answer

If an adjustment to Supplies is not made, the balance in the Supplies account will be too high, not too low. This is because the balance in the Supplies account only reflects the value of supplies that have not yet been used, so if supplies have been used without adjusting the account, the balance will be overstated.

If an Adjustment to Supplies Is Not Made, the Balance