Final answer:
In the context of financial accounting, supplies on a company's balance sheet are categorized as current assets and are intended to be used within the company's operations rather than sold. The correct option is 'e'.
Step-by-step explanation:
The question is asking to fill in the blanks with the correct terminology related to financial accounting. Specifically, it is about categorizing supplies correctly as part of understanding a company's balance sheet. When we consider the balance sheet categories, supplies are usually considered to be current assets. They are typically used within the company rather than being sold to customers. Items that are sold to customers are part of inventory, not supplies. Supplies can include items like office supplies, cleaning supplies, and other materials that are consumed during the day-to-day operations of a business.
Given this explanation, the correct answer would be "e" - supplies are current assets; intended to be used. It is important to differentiate between items on the balance sheet as current assets (which are either cash, cash equivalents, or assets that will be turned into cash within a year) and supplies that are part of those assets but are intended for use rather than sale.