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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Under the consumption method, an asset (supplies inventory) is recorded when inventories are acquired, and the expenditure is recorded when the supplies are consumed. This is because the supplies are considered an expense only when they are actually used in the business operations.

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