Question: (a) Whether a government uses the purchases method to report materials and supplies expenditures or the consumption method, the total fund balance and the net

(a) Whether a government uses the purchases method to report materials and supplies expenditures or the consumption method, the total fund balance and the net change in fund balance are the same. Explain why.
(b) Explain how reporting in the statement of revenues, expenditures, and changes in fund balances differs, if at all, under the two methods.
(c) Explain how the differs, if at all, under the two methods.

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a The primary difference between the two methods of accounting for inventory ie the purchases method or the consumption method is the timing of the ex... View full answer

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