Question

Supplies are Input Field 1 of 2 assets unavailable correct (assets/expenses/liabilities) until they are used. When they are used up, their costs are reported as Input Field 2 of 2 expenses unavailable correct (assets/expenses/liabilities).

Options:
A) Assets, expenses
B) Expenses, assets
C) Liabilities, assets
D) Assets, liabilities

Answer 1

Supplies are assets that are unavailable until they are used. When they are used up, their costs are reported as expenses.

Step-by-step explanation:

Supplies are assets that are unavailable until they are used. When they are used up, their costs are reported as expenses.

In accounting, assets are resources that have future economic value. Supplies are considered assets because they have a value that can be used to generate revenue. When supplies are used, their value is consumed and they are no longer available, resulting in an expense.

For example, if a company purchases office supplies such as pens and paper, these supplies are considered assets until they are used. Once they are used, the cost of these supplies is reported as an expense on the company's income statement.