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:

Reporting

The process of organizing data into informational summaries in order to monitor how different areas of a business are performing.

Information System

A system that includes data, people, procedures, hardware, and software that help in planning and decision making; a software-based solution used to gather and analyze information.

Expert Systems

A type of artificial intelligence program that uses knowledge and inferential rules to solve problems that would require human expertise.

Natural Language Processing

A branch of artificial intelligence that deals with the interaction between computers and humans using natural language.