IIA Exam IIA-ACCA Topic 1 Question 91 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 91
Topic #: 1

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

Limited Time Offer

25%

Off

Get Premium IIA-ACCA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Gerald

4 months ago

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

upvoted 0 times

...

Maryln

4 months ago

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

upvoted 0 times

...

Robt

4 months 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.

upvoted 0 times

Demetra

3 months ago

Yes, Option C makes the most sense. It aligns with the calculations we did.

upvoted 0 times

...

Shonda

3 months ago

I agree, Option C seems to be the most logical choice based on the information given.

upvoted 0 times

...

Dorothy

3 months ago

I think Option C is correct too. The math adds up perfectly.

upvoted 0 times

...

Felix

4 months 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.

upvoted 0 times

Tennie

3 months ago

Agreed, option B seems to be the most accurate based on the numbers provided.

upvoted 0 times

...

Sue

3 months ago

Definitely not D, that's way too high based on the information given.

upvoted 0 times

...

Beckie

3 months ago

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

upvoted 0 times

...

Leonida

4 months ago

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

upvoted 0 times

...

Malcom

4 months 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.

upvoted 0 times

...

Mozell

4 months ago

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

upvoted 0 times

Felicitas

3 months ago

Exactly, it's important to match the recorded expenses with the physical count.

upvoted 0 times

...

Denise

3 months ago

That would be the adjusting entry at the end of year two then.

upvoted 0 times

...

Tandra

3 months ago

Yes, I agree. It makes sense to debit office supplies on hand for $11,500.

upvoted 0 times

...

Sharika

3 months ago

I think we can confidently go with option B for the adjusting entry.

upvoted 0 times

...

Minna

3 months ago

I think option B is correct, it matches the physical count.

upvoted 0 times

...

Maxima

4 months ago

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

upvoted 0 times

...

Sanjuana

4 months ago

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

upvoted 0 times

...

Shonda

4 months ago

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

upvoted 0 times

...