This Year, Port City Was Sued for Injuries Sustained When

question 46

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:

John Cabot

A Venetian navigator and explorer who, under the commission of Henry VII of England, led an expedition in 1497 that is believed to have been the first European exploration of the mainland of North America since the Norse.

All-Water Route

A navigational path that is exclusively through bodies of water, often sought for trade, exploration, or military purposes to avoid land-based challenges.

Black Slavery

The forced labor and enslavement of African people and their descendants, predominantly in the Americas, from the 16th to the 19th century.

Portuguese

Relating to Portugal or its people, language, or culture.