Choice "B" is correct. Expenditures extending over more than one period may be allocated between or among accounting periods. Non spendable current resources such as inventory or prepaid may be recorded using either the consumption or the purchases method. Current assets of this character serve as the basis for classification of fund balance as non spendable.Choice "c" is incorrect. Absolutes are generally not true. Insurance expenditures may be accounted for as an expenditure in the period of acquisition but may also be allocated between benefitting periods using the consumption method.Choice "d"is incorrect. Expenditures benefitting the current period will not be deferred to subsequent periods.Choice "a" is incorrect. Absolutes are generally not true. Insurance expenditures allocated between benefitting periods using the consumption method or may be accounted for as an expenditure of the current period using the purchases method.