Use the Following Information to Answer Questions

question 18

Multiple Choice

Use the following information to answer questions
During the year the City's Self-Insurance Internal Service Fund billed the General Fund $600,000 for "premiums," of which $60,000 was for catastrophic losses and the balance was the premium computed on an actuarially determined basis.During the year the City incurred $500,000 in claims losses.The total amount transferred to the Self-Insurance Fund by the General Fund was $620,000.
-The amount the City Self-Insurance Fund can recognize as revenue is

• A)$620,000
• B)$600,000.
• C)$540,000.
• D)$500,000.

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Definitions:

Purchase Order

A formal document sent by a buyer to a seller requesting the purchase of products or services, specifying types, quantities, and agreed prices.

Legal Obligation

A duty enforced by law that requires an individual or entity to act or refrain from acting in a certain manner.

Specified Date

A particular day designated for a certain event or action to take place.

Sourcing

The process of finding suppliers of goods or services, especially in a manufacturing or business context.