Multiple Choice
At March 1 Payday Inc. reported a balance in Supplies of $250. During March the company purchased supplies for $800 and consumed supplies of $700. If no adjusting entry is made for supplies
A) owner's equity will be overstated by $700.
B) expenses will be understated by $800.
C) assets will be understated by $150.
D) net income will be understated by $700.
Correct Answer:
Verified
Correct Answer:
Verified
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