On January 30, Tensing Company purchased supplies of $2,000. The supplies were all consumed in February. Which of the following
statements is true regarding the accounting for these supplies.
A)The supplies should be charged to Supplies Expense in January and no adjusting
entry is needed until the supplies are used in February
B)The supplies should be recorded as an asset in January and no adjusting entry
is needed until the supplies are used in February
C)The supplies should not be recorded in the accounting records until used in
February
D)The adjusting journal entry at the end of January will include a debit to
Supplies Expense and a credit to Supplies for $2,000

15.

The fiscal year of a business is usually determined by:
A)the SEC
B)the IRS
C)the business
D)a lottery