Under the consumption method for recording supplies that are maintained on a perpetual inventory system, the adjusting entry made at year end would affect which of the following accounts?
A) Fund Balance-Nonspendable-Inventory of Supplies.
B) Fund Balance-Restricted-Inventory of Supplies.
C) Expenditures.
D) Inventory of Supplies.

Question

Quizplus · Accepted Answer

The adjusting entry under the consumption method would affect the Fund Balance-Nonspendable-Inventory of Supplies to reflect the amount of supplies on hand that are not available for spending.

Under the Consumption Method for Recording Supplies That Are Maintained