Which of the following describes the proper accounting procedure for supplies in the General Fund?
a. Supplies may be accounted for as expenditures either when purchased or when consumed. In either case, material amounts of inventory are shown on the balance sheet
b. Supplies must be accounted for as expenditures when purchased. Therefore, inventories are not shown on the balance sheet
c. Supplies must be initially recorded as assets, and then charged off as expenditures as the supplies are consumed
d. Supplies may be accounted for as expenditures either when purchased or when consumed. If the purchases method is used, inventories are not shown on the balance sheet.
Question 2
When the context diagram and the level 0 diagram have equivalent external data flows, the DFDs are said to be balanced.
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