Accounting for Governmental & Nonprofit Entities 17th Edition by Jacqueline Reck,Suzanne Lowensohn,Earl Wilson

Exercise 7

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?