Question

Supplies in hand would be classified as ?
Expenses
Capital
Assets
Revenue

Answer 1

Answer:

Supplies on hand are shown on the balance sheet of the business as a current asset as they are expected to be used within one year. They are normally shown just below inventories.

Explanation:

Supplies on hand refers to the stock of on-hand supplies of consumable items that is typically maintained by a business to support its operations. If the amount is more substantial, the cost can be initially classified as an asset, and then charged to expense as supplies on hand are consumed.