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IIA Exam IIA-ACCA Topic 1 Question 91 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 91
Topic #: 1

[All IIA-ACCA Questions]

An organization's account for office supplies on hand had a balance of S9,000 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 be recorded in the adjusting entry at the end of year two?

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 S20.500

DA debit to office supplies on hand for S42.500

Show Suggested Answer

Suggested Answer: A

by Lizette at Oct 24, 2024, 09:32 AM

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Gerald

3 days ago

This is a piece of cake! Just remember, it's always the balance on hand at the end. No need to overthink it.

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Maryln

4 days ago

Option A is just asking to get you in trouble with the IRS. Debit the supplies for the full amount, people!

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Robt

5 days ago

I'm leaning towards Option C. It makes the most sense when you do the math: $9,000 + $45,000 - $11,500 = $20,500.

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Felix

14 days ago

Woah, hold up! Option D is way off. How do you get $42,500 from these numbers? Someone needs to go back to Accounting 101.

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Beckie

2 days ago

Yeah, that makes sense. The ending balance should match the physical count.

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Leonida

4 days ago

I think the correct answer is B) A debit to office supplies on hand for $11,500.

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Malcom

18 days ago

I disagree, I believe the adjusting entry should be a debit to office supplies on hand for $11,500 because that's the actual amount on hand.

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Mozell

23 days ago

Option B seems legit, since it matches the physical count at the end of year two.

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Maxima

6 days ago

Yeah, it seems like the most accurate choice based on the information given.

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Sanjuana

15 days ago

I agree, option B makes sense because it matches the actual amount on hand.

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Shonda

25 days ago

I think the adjusting entry should be a debit to office supplies on hand for $2,500.

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