Chapter 6, Problem 6Q

a.

To determine

Explain the reasons when a government uses the purchases method to report materials and supplies expenditures or the consumption method, the total fund balance and the net change in fund balance are the same.

b.

To determine

Explain the reporting of statement of revenues, expenditures, and changes in the fund balances under both the methods.

c.

To determine

Explain the differences in the balance sheet under both the methods.