(a) Whether a government uses the purchases method to report materials and supplies expenditures or the consumption...

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 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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...