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Sunday, May 25, 2014

A city acquires supplies for its fire department and uses the consumption method of accounting….

A city acquires supplies for its fire department and uses the consumption method of accounting. Which of the following statements is true for the fund-based statements?

a. An expenditures account was debited at the time of receipt.
b. An expense is recorded as the supplies are consumed.
c. An inventory account is debited at the time of the acquisition.
d. The supplies are recorded within the General Fixed Assets Account Group.
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