A company purchased supplies for cash,which will be consumed during future months.Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months?

Question

Quizplus · Accepted Answer

When the supplies are used during future months, total assets will decrease, operating expenses will increase, and operating income may decrease depending on the amount of supplies used and the associated cost. However, total assets will not remain unchanged as the supplies are considered a current asset and their consumption will result in a decrease in the asset balance.

A Company Purchased Supplies for Cash,which Will Be Consumed During