試題詳解

2. At March 1，J.C. Retro Inc reported a balance in Supplies of $200. During March, the company purchased supplies for $950 and consumed supplies of $800. If no adjusting entry is made for supplies:
(A) stockholders' equity will be overstated by $800.
(B) expenses will be understated by $950.
(C) assets will be understated by $350.
(D) net income will be understated by $800.