An adjusting entry debiting Supplies Expense and crediting Supplies is an example of adjusting a(n) a. prepaid expense. b. accrued expense. c. prepaid revenue. d. deferred revenue. The following line items are from the vertical analysis of an income statement: What needs to be changed on the statement? a. The percentage for total expenses should be 33%. b. The percentage for net income should 25%. c. Total revenues should be the base expressed as 100%. d. None of these choices are correct