Ask Question
14 May, 20:50

The adjusting entry to adjust supplies was omitted at the end of the year. This would affect the income statement by having a. expenses understated and therefore net income overstated b. revenues understated and therefore net income understated c. expenses understated and therefore net income understated d. expenses overstated and therefore net income understated

+3
Answers (1)
  1. 14 May, 21:13
    0
    The answer is: A) expenses understated and therefore net income overstated

    Explanation:

    Supplies are an essential part of the Cost of Goods Sold (COGS), so if they weren't adjusted at the end of the year, the COGS will be lower than they should be.

    If COGS are artificially low, then the gross income (and net income) will be artificially high.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The adjusting entry to adjust supplies was omitted at the end of the year. This would affect the income statement by having a. expenses ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers