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IIA-CIA-PART3 · Question #154

IIA-CIA-PART3 Question #154: Real Exam Question with Answer & Explanation

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Question

An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two. The organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11 ,500 in office supplies on hand. Based on this Information, what would he recorded in the adjusting entry an the end of year two?

Options

  • AA debit to office supplies on hand for S2.500
  • BA debit to office supplies on hand for $11.500
  • CA debit to office supplies on hand for $20,500
  • DA debit to office supplies on hand for $42,500

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