Office supplies purchased in bulk are initially charged to an asset account and are used on a daily basis.An expense will normally be recorded when:
A)supplies are ordered.
B)supplies are paid for.
C)at the end of the accounting period when a balance day adjustment is prepared for supplies used.
D)on a daily basis.

Question

Quizplus · Accepted Answer

The expense for office supplies purchased in bulk should be recorded at the end of the accounting period through a balance day adjustment, which reflects the supplies that were actually used during the period. This ensures that the expense is matched with the period in which the supplies were consumed. Option A is incorrect because ordering supplies does not represent an actual expense. Option B is incorrect because paying for supplies is not an indication of their use or consumption. Option D is incorrect because a daily recording would not accurately reflect the amount of supplies actually used during the period.

Office Supplies Purchased in Bulk Are Initially Charged to an Asset