Indirect expenses are included in the calculation of a department's direct operating margin

The asset account, Office Supplies, had a beginning balance of $3,800. During the accounting period, office supplies were purchased, on account, for $2,500. Supplies Expense for the accounting period is $4,000

What is the ending balance of Office Supplies? A) $6,300 B) $2,300 C) $4,000 D) $5,300

Eve is a contractor. Kanye contracts with Eve to remodel his tiny home. After finishing the remodel, Eve sends Kanye an invoice. Which of the following is true?

A. Eve is in default. B. Kanye is a secured creditor. C. Eve is an unsecured creditor. D. Kanye’s tiny home is collateral.