The City of Ames Uses the Consumption Method to Report

question 17

Multiple Choice

The City of Ames uses the consumption method to report its inventory of supplies on its general fund balance sheet.What account is debited in the general fund when Ames acquires supplies?

• A)Expenditures
• B)Inventory of Supplies
• C)Supplies Expense
• D)Fund Balance-Reserved for Inventories

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Definitions:

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The last payment in an agreement, settling all outstanding balances and obligations.

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A provision in the U.S. tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software within the tax year it was purchased.

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