When an adjusting entry is made for supplies used, the supplies expense account is increased and the Asset account is decreased.
What is an Asset account?
- An asset account is an account used to keep track of a company's assets.
- When a capital expense is credited to an asset account, it is referred to as a capitalized expense.
- The quantity of assets that the owner brought into the company is shown in the asset account.
- Cash, Accounts Receivable, Inventory, Prepaid Expenses, Investments, Buildings, Equipment, Vehicles, Goodwill, and many more are some examples of asset accounts.
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