Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the Expenditure is recorded when the supplies are consumed.

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Quizplus · Accepted Answer

This statement is true for the consumption method of accounting for supplies inventory. The asset is initially recorded when the inventory is acquired, and the corresponding expenditure is recorded when the supplies are consumed. This method helps to ensure that the expenses are matched with the revenue they generate, which provides a more accurate view of a company's financial performance.

Under the Consumption Method to Account for Supplies Inventory,an Asset