Shoshone County Uses the Consumption Method to Account for Supplies

question 70

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:

Stock Variable

A quantity measured at one specific point in time, representing a snapshot of a quantity.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Federal Government

The central government of a federation, which encompasses the overall governing bodies of a country, including legislative, executive, and judicial branches.

Consumer Income

The total amount of income earned by consumers, including wages, salaries, benefits, and investment income.