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:

Restricted Indorsement

A condition placed on the transfer of a negotiable instrument, specifying to whom the instrument can be transferred or the conditions under which it can be paid.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the endorser or specifies particular conditions.

Probability Value

A measure that indicates the likelihood of the occurrence of a given event or the significance of results obtained in a statistical hypothesis testing.

Statistical Tests

Mathematical procedures used in statistics to assess hypotheses or make inferences based on sample data.