What method of accounting does not require adjustments to supplies expenses for government-wide statements?

In governmental accounting, the correct answer is the Consumption Method. This method recognizes supplies expenses when they are actually consumed rather than when they are purchased. This means that under the Consumption Method, there is no need for adjustments to supplies expenses in the government-wide statements because the expenses are accounted for based on their usage, providing a clearer picture of the actual costs incurred during a specific period.

When using the Consumption Method, supplies purchased are recorded as assets until they are used, and only then do they become expenses. This leads to a more accurate representation of the government’s financial condition because it aligns the recognition of expenses with the period in which the resources are utilized.

In contrast, the other methods may involve recording expenses at the point of purchase or require adjustments to account for the supplies held at the end of the period. These adjustments can complicate the financial statements and may not reflect the true economic events that have occurred during the accounting period. Thus, the Consumption Method is favored for its ability to simplify the reporting process regarding supplies expenses in government-wide financial statements.