Assume That a Government Purchases $85,000 of Inventory for the General

Multiple Choice

Assume that a government purchases $85,000 of inventory for the General Fund during the year. The General Fund began the year with an inventory balance of $15,000 and ended the year with a balance of $35,000. The General Fund uses the consumption method of inventory accounting and a perpetual inventory system. The General Fund should report

A) Expenditures of $85,000 for the year.
B) Expenditures of $65,000 for the year.
C) Other financing source of $20,000 for the year.
D) Other financing use of $20,000 for the year.