Shoshone County Uses the Consumption Method to Account for Supplies

question 44

Multiple Choice

Shoshone County uses the consumption method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $450,000 of supplies for use by activities accounted for in the general fund. The city used $300,000 of those supplies during the year. At fiscal year-end the appropriate account balances on the government-wide financial statements would be

• A) Expenses $450,000; Supplies inventory $150,000.
• B) Expenses $450,000; Supplies inventory $0.
• C) Expenses $300,000; Supplies inventory $150,000.
• D) Expenses $300,000; Supplies inventory $0.

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Definitions:

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A diagram that shows all possible logical relations between a finite collection of different sets by using overlapping circles or other shapes.

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