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    Timest's Avatar
    Timest Posts: 1, Reputation: 1
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    #1

    Nov 19, 2009, 03:44 PM
    End of Fiscal Period, Didn't account for expenses for supplies.
    If at the end of a fiscal period, a business owner does not make an adjustment for supplies what effect will it have on the business's financial reporting?

    I know that this is not a proper procedure of accounting, but would this just affect the business's financials by not ending up with the correct fiscal period financials as:

    He didn't use or post the supplies (expense), so the business would show more of a profit than it should for that fiscal period. Is this the correct answer?

    If not could someone please let me know how to answer this properly.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Nov 20, 2009, 12:08 AM

    Yes, that's a correct answer but you're not done. The used supplies didn't come out of the asset account either, so how does that get affected?
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