Coast Company has 5,000 items of building supplies on hand that cost $150,000;a bill from the vendor for $50,000 of these supplies has not yet been paid.The company expects to earn $400,000 for its services when it uses the building supplies.The company's balance sheet would include an asset,Supplies,in the amount of:

Question

Quizplus · Accepted Answer

An asset is an economic resource presently controlled by the company;it has measurable value and is expected to benefit the company by producing cash inflows or reducing cash outflows in the future.The building supplies on hand that cost $150,000 would be reported as an asset on the balance sheet.

Coast Company Has 5,000 Items of Building Supplies on Hand