A company usually determines the amount of supplies used during a period by
A) adding the supplies on hand to the balance of the Supplies account.
B) summing the amount of supplies purchased during the period.
C) taking the difference between the supplies purchased and the supplies paid for during the period.
D) taking the difference between the balance of the Supplies account and the cost of supplies on hand.

Question

Quizplus · Accepted Answer

The amount of supplies used during a period is determined by taking the difference between the balance of the Supplies account at the beginning of the period (plus any purchases during the period) and the cost of supplies on hand at the end of the period. This method accounts for any supplies used during the period.

A Company Usually Determines the Amount of Supplies Used During