This Year, Port City Was Sued for Injuries Sustained When

question 12

Multiple Choice

This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps.The City attorney estimates the City will be held liable by the courts and a judgment of $300,000 will result.Because of the nature of the case it will likely be four years before the City makes any payment related to the accident.The present value of the likely future payment is $251,000.In the government-wide financial statements, at the end of the current fiscal year, Port City should recognize a liability of

• A)$300,000.
• B)$251,000.
• C)$0.
• D)$75,000.

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Definitions:

War of 1812

A military conflict fought between the United States and the British Empire (and their respective allies) from 1812 to 1815, largely over issues of trade and maritime rights.

Republican Government

A form of government in which power resides in elected individuals representing the citizen body and government leaders exercise power according to the rule of law.

Aftermath

The consequences or after-effects of a significant event or situation, often one with negative outcomes.

Canadian Borderland

The geographic area along the boundary between Canada and the United States, characterized by shared cultural and economic ties and travel.