Shoshone County Uses the Consumption Method to Account for Supplies

question 22

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 purchases $600,000 of supplies for use by activities accounted for in the General Fund.The City used $400,000 of those supplies during the year.At fiscal year-end the appropriate account balances on the General Fund financial statements would be

• A)Expenditures $600,000; Supplies Inventory $200,000.
• B)Expenditures $600,000; Supplies Inventory $0.
• C)Expenditures $400,000; Supplies Inventory $200,000.
• D)Expenditures $400,000; Supplies Inventory $0.

---

Definitions:

Ben Bernanke

A prominent American economist who served as the Chairman of the Federal Reserve from 2006 to 2014, known for his policies during the financial crisis of 2008.

Banging The Gong

A ceremonial act of ringing a gong, often used to signify the opening or closing of trading on a stock exchange.

Discount Rate

The charge applied by the Federal Reserve on loans provided to commercial banks and various financial establishments via its discount window.

Fed Funds Target Rate

The interest rate at which banks lend reserve balances to other banks overnight, as determined by the Federal Reserve, influencing overall monetary and financial conditions.