Question: 1. Gross Company purchased $50,000 worth of office supplies on January 1. Gross expects to use 60 percent of the supplies in the first year and the remainder in the second year. After adjusting entries (and before closing entries), how much should Gross show in its Supplies Expense account?
2. The _____ convention, links the timing of some expenses with revenue recognition Subtracting nonoperating expenses from operating income yields: