If a company fails to make an adjusting entry to record supplies expense, then: a. stockholders’ equity will be understated. b.expense will be understated. c.assets will be understated. d.net income will be understated

b. Expense will be understated.

Explanation:

The adjusting journal entry to record supplies expense would have been:

Supplies expense        DR.

  To Supplies

The effect of above adjusting entry would have been the following;

Thus, failure to post the above adjusting entry would have:

Therefore, the correct option is expenses would have been understated if the company fails to post the above adjusting entry.

a.

answer; rapid growth in buyer demand and high buyer switching cost;