Shoshone County Uses the Consumption Method to Account for Supplies

question 7

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 General Fund financial statements would be

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

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Definitions:

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.

Macaroni And Cheese

A popular dish made typically from cooked macaroni pasta and a cheese sauce, often with added ingredients such as breadcrumbs or meat.

Serving

The portion or quantity of food designated as a single helping.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a good or service.