A firm purchased $40,000 of supplies in its first year of operations but used up only $30,000 of the supplies during the year. Therefore, Multiple Choice under the relevance characteristic, the firm should expense $40,000 under the materiality constraint, it makes no difference what the firm does with respect to accounting for supplies under the matching concept, the firm should report $30,000 of expense the firm should record $40,000 of supplies in the balance sheet at the end of the year, as the form is a going concern