Q: 1. The net book value of a fixed asset is determined by: a.Original cost less accumulated depreciation b.Original cost less depreciation expense c.Original cost less accumulated depreciation plus depreciation expense d.Original cost plus accumulated depreciation 2.The balance in the supplies account, before adjustment at the end of the year is $725. The proper adjusting entry if the amount of supplies on hand at the end of the year is $300 would be: a. debit Cash $300, credit Supplies $300 b. debit Supplies Expense $425, credit Supplies $425 c. debit Supplies Expense $300, credit Supplies $300 d. debit Supplies $425, credit Supplies Expense $425 3. The adjusting entry to adjust supplies was omitted at the end of the year. This would effect the income statements by having: a. expenses understated and therefore net income overstated b.revenues understated and therefore net income understated c.expenses understated and therefore net income understated d. expenses overstated and therefore net income understated
A: 1) b 2) b 725 - 300 = 425 [supplies which are being used up, so it's supplies expense] 3) a expenses understated = income overstated Have a good day! You sure have alot of Accounting questions.. :)