Purrfect Pets had $6,000 of supplies at the end of October. During November, the

Question

Purrfect Pets had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not true?

During November, the company used $7,000 of supplies. Supplies should be reported at $1,000 on the balance sheet. An expense should be debited for $7,000 in November. An asset should be debited for $1,000 in November.


Purrfect Pets had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not true?

Explanation / Answer

Expense = Opening Balance + Purchases - Closing Balance
= 6000 + 2000 - 1000 = $7000

Hence, During November, the company used $7,000 of supplies.

OPTION A

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