The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)
A) capital
B) asset
C) contra asset
D) liability

Question

Quizplus · Accepted Answer

The cost of office supplies is an asset because it represents a future economic benefit that will be used up over time. As the supplies are used, their cost will be recognized as an expense on the income statement. Therefore, the cost of office supplies is shown on the balance sheet as an asset until they are consumed.

The Cost of Office Supplies to Be Used in Future