Under the consumption method of accounting for inventories, a debit is made to Supplies inventory and a credit is made to Nonspendable fund balance if year-end inventory is greater than the beginning of the year inventory in governmental-type funds.

Question

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A debit is made to Supplies inventory and a credit is made to Nonspendable fund balance if year-end inventory is greater than the beginning of the year inventory only under the purchases method of accounting for inventory.

Under the Consumption Method of Accounting for Inventories, a Debit