Question 2.

Part A.

A credit to a liability account A. is an error. B. indicates an increase in the amount owed to creditors. C. must be accompanied by a debit to an asset account. D. indicates a decrease in the amount owed to creditors.

Part B. A person who wants to determine the balance of a particular account should refer to the A. journal. B. source document C. ledger. D. chart of accounts.

Part C. At March 1, Blue Spruce Corp. reported a balance in Supplies of $230. During March, the company purchased supplies for $1100 and consumed supplies of $930. If no adjusting entry is made for supplies: A.assets will be understated by $400. B. expenses will be understated by $1100. C.stockholders' equity will be overstated by $930. D. net income will be understated by $930.