Which of the following would not result in a portion of fund balance being classified as nonspendable?
A. Advances to other funds.
B. Inventory.
C. A city council passing enabling legislation that requires proceeds from a newly authorized sales tax be spent on a downtown revitalization project.
D. Prepaid insurance.
Question 2
Cost of goods sold may be computed by
a. adding beginning inventory and ending inventory together.
b. subtracting ending inventory from cost of goods available for sale.
c. subtracting beginning inventory from cost of goods available for sale.
d. adding beginning inventory to cost of goods available for sale.
e. subtracting beginning inventory from net purchases.
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