Which of the Following Describes the Proper Accounting Procedure for Supplies

question 29

Multiple Choice

Which of the following describes the proper accounting procedure for supplies in the General Fund?

• A)Supplies may be accounted for as expenditures either when purchased or when consumed.In either case,material amounts of inventory are shown on the balance sheet
• B)Supplies must be accounted for as expenditures when purchased.Therefore,inventories are not shown on the balance sheet
• C)Supplies must be initially recorded as assets,and then charged off as expenditures as the supplies are consumed
• D)Supplies may be accounted for as expenditures either when purchased or when consumed.If the purchases method is used,inventories are not shown on the balance sheet.

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Definitions:

Setup Costs

Expenses related to the initial arrangement or preparation for a new product run, task, or project, often including the costs of adjusting machinery and equipment.

DRP

Distribution Requirements Planning, a method used in business management for planning inventory and supply chain processes in distribution networks.

Time-Phased

refers to planning or scheduling that outlines specific tasks or activities to be completed in distinct time frames, ensuring that resources are allocated and objectives are met systematically over time.

Distribution Network

The interconnected group of storage facilities and transportation systems that move goods from producers to consumers.