When accounting for inventory items in a governmental fund, a reservation of fund balance is always required when the consumption method is used.

Name: When accounting for inventory items in a governmental fund, a reservation of fund balance is always required when the consumption method is used.
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In governmental accounting, the consumption method does not always require a reservation of fund balance for inventory items, as it recognizes inventory as an asset and expenses it as consumed.

When Accounting for Inventory Items in a Governmental Fund, a Reservation