Shoshone County Uses the Consumption Method to Account for Supplies

question 48

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:

Input

Data or signals received by a system, device, or computational process for processing or manipulation.

Closed

Often refers to a circuit or loop that is complete and allows electrical current to flow through it.

Closed

Refers to a state or system that is not open for external inputs, often implying a complete or sealed condition.