GASB Accounting and Financial Reporting Standards for Risk Financing Activities

question 78

Multiple Choice

GASB accounting and financial reporting standards for risk financing activities provide that an internal service fund should recognize claims expense and a related liability when a claim has been asserted and

• A) A municipal court has awarded a judgment to a claimant fund (e.g.,the General Fund).
• B) It is reasonably possible that a loss has been incurred and the amount can be reasonably estimated.
• C) It is probable that a loss has been incurred and the amount can be reasonably estimated.
• D) A loss has been incurred,but the amount cannot be reasonably estimated.

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Definitions:

Task Orientation

focuses on the completion of tasks and the achievement of specific objectives within a set timeframe.

Initiating Structure

A leadership behavior that organizes and defines what group members should be doing to maximize output.

Authority-Obedience Management

A management style focused on clear hierarchies and the strict following of orders, where managerial authority is emphasized, and obedience from subordinates is expected.

Concern For People

A focus within an organization on the well-being, growth, and satisfaction of its employees.