Cara, Inc.purchased supplies costing ₤2,500 on January 1, 2011 and recorded the transaction by increasing assets.At the end of the year ₤1,300 of the supplies are still on hand.How will the adjusting entry impact Cara, Inc.'s statement of financial position at December 31, 2011?
A) Decreased Assets ₤ 1,300.
B) Increased Equity ₤ 1,300.
C) Increased Liabilities ₤ 1,200.
D) Decreased Assets ₤ 1,200.
Correct Answer:
Verified
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