At March 1, I. Repo Inc. reported a balance in Supplies of $200. During March, t

Question

At March 1, I. Repo Inc. reported a balance in Supplies of $200. During March, the company purchased supplies for $950 and consumed supplies of $700. If no adjusting entry is made for supplies:

Answer

stockholders' equity will be overstated by $700.

expenses will be understated by $950.

assets will be understated by $450.

net income will be understated by $700.

stockholders' equity will be overstated by $700.

expenses will be understated by $950.

assets will be understated by $450.

net income will be understated by $700.

Explanation / Answer

stockholders' equity will be overstated by $700.

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