Failure to record the supplies used during the year would result in which of the following?

Question

Quizplus · Accepted Answer

Failing to record the supplies used would mean that the expenses are not recorded, leading to an overstatement of net income and an overstatement of assets (since the supplies are still recorded as assets). Consequently, stockholders' equity would also be overstated because net income, a component of equity, is overstated.

Failure to Record the Supplies Used During the Year Would