1)

A county's general fund has $4,000,000 in supplies on hand at the start of 2020. It purchases $25,000,000 in supplies and uses supplies costing $26,000,000 during 2020. If the county uses the consumption method to report supplies inventories, what balances appear in the general fund financial statements for 2020?

Select one:

A. Expenditures of $26,000,000 and fund balancenonspendable of $3,000,000

B. Expenditures of $25,000,000 and no nonspendable fund balance

C. Expenditures of $25,000,000 and fund balancenonspendable of $3,000,000

D. Expenditures of $26,000,000 and no nonspendable fund balance

2)

A county's general fund has $4,000,000 in supplies on hand at the start of 2020. It purchases $25,000,000 in supplies and uses supplies costing $26,000,000 during 2020. If the county uses the purchases method to report supplies inventories, what balances appear in the general fund financial statements for 2020? Assume the supplies inventories are not material.

Select one:

A. Expenditures of $26,000,000 and fund balancenonspendable of $3,000,000

B. Expenditures of $25,000,000 and no nonspendable fund balance

C. Expenditures of $25,000,000 and fund balancenonspendable of $3,000,000

D. Expenditures of $26,000,000 and no nonspendable fund balance