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:

Contract

A contract is a legally binding agreement between two or more parties that specifies their obligations and the consequences for failing to fulfill those obligations.

Accident

An unplanned, unforeseen event causing damage or injury.

Apprenticeship

A system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study.

Contract

A binding legal arrangement agreed upon by two or more parties, enforceable through legal action.