Governmental & NonProfit Accounting, please answer the following:

1. How does accounting in a governmental fund for the purchase of supplies from an outside vendor differ from the purchase of supplies from an internal service fund?

2. Explain why some governments may account for inventories of supplies using the purchases method in the General Fund and the consumption method at the government-wide level? How would the amount reported for expenditures in the General Fund compare with the amount of expenses reported at the government-wide level if the two methods of inventory accounting are used?

Multiple Choice:

The Village of Thompson borrowed $1,000,000 from a local bank by issuing 4% tax anticipation notes. If the village repaid the tax anticipation notes six months later after collecting its next installment of property taxes, the General Fund journal entry to record repayment will include: a) A debit to Tax Anticipation Notes Payable for $1,000,000; b) A debit to Expenditures for $20,000; c) A debit to Expenditures for $1,020,000, or d) Both a and b

*From Accounting for Governmental and Nonprofit Entities 17th Edition, Chapter 4. If you need any other information, let me know