Author Question: The supplies account has a balance of 4,400 at the beginning of the year and was debited during the ... (Read 70 times)

stevenposner · **on:** Jul 5, 2018

The supplies account has a balance of 4,400 at the beginning of the year and was debited during the year for 2,400, representing the total of supplies purchased during the year. If 400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
a. 400
b. 2,000
c. 6,800
d. 6,400

Question 2

Within a fund, which of the following results from using the current financial resources measurement focus?

a. capital assets will be depreciated
b. property taxes will be recognized on the cash basis of accounting
c. a liability must be reported for unsettled claims, provided payment ultimately will be made
d. long-term assets and liabilities will not be recorded in the fund