This Year, Port City Was Sued for Injuries Sustained When

question 38

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 General Fund, 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:

Less-Developed Countries

Nations with a lower standard of living, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Neo-Mercantilist

A modern economic policy that embraces government intervention to increase exports, discourage imports, and accumulate foreign currency reserves, inspired by mercantilism.

Protectionist Actions

Actions taken by a country to protect domestic industry

Trade Surplus

The result when a country engaged in trade exports more than it imports, also called positive trade balance.