What is false regarding the two methods for recording inventories in governmental funds?

Question

Quizplus · Accepted Answer

Under the consumption method, supplies inventory is debited when supplies are acquired. When supplies are consumed, the expenditure account is debited and the supplies inventory account is credited. At the end of the year, the expenditure account has the amount of supplies used. Under the purchases method, expenditures are debited when supplies are received. Expenditures are charged for purchases made during the year and at the end of the year the supplies inventory and Nonspendable Fund Balance are adjusted to reflect actual supplies on hand. The expenditure account reflects the amount of supplies purchased during the year. The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense when preparing the government-wide statements.
Essay Questions

What Is False Regarding the Two Methods for Recording Inventories