A Self-Insurance Activity That Is Accounted for in an Internal

question 3

Multiple Choice

A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the Internal Service Fund is a proprietary fund, the claims will be reported on the statement of revenues, expenses, and change in net position as

• A) An operating expense.
• B) A nonoperating expense.
• C) A contra-revenue to premiums charged.
• D) An other financing use.

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Definitions:

Quotas

Limits or targets, usually set by governments, on the quantity or value of goods that can be imported or exported.

Dumping

The act of a country or business selling products at less than what it costs to produce them.

International Business

The buying, selling, and trading of goods and services across national boundaries.