Campbell County Uses the Consumption Method to Record All Inventories

Multiple Choice

Campbell County uses the consumption method to record all inventories and prepayments.The County has a 9/30 fiscal year-end.On April 1, 2011, the County purchased a two-year insurance policy at a total cost of $400,000, paying for the policy out of the General Fund.In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 9/30/11 would be

A) $400,000.
B) $300,000.
C) $200,000.
D) $100,000.