Campbell County Uses the Consumption Method to Record All Inventories

question 32

Multiple Choice

Campbell County uses the consumption method to record all inventories and prepayments.The County has a 9/30 fiscal year-end.On April 1, 2015, the county purchased a two-year insurance policy at a total cost of $400,000, paying for the policy out of the general fund.In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 9/30/15 would be

• A)$400,000.
• B)$300,000.
• C)$200,000.
• D)$100,000.

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Definitions:

Unconformity

An interface between distinct groups of strata that shows a phase of erosion or no sediment accumulation.

Desert Varnish

A thin, dark film or coating of iron and manganese oxides, silica, and other materials; formed by prolonged exposure at the surface; synonym rock varnish.

Desert Pavement

A natural concentration of pebbles and other rock fragments that mantle a desert surface of low relief.

Cross-Cutting Relations

A geological principle stating that any geologic feature that cuts across another feature must be younger than the feature it cuts.