The City Is Using an Internal Service Fund to Self-Insure

question 4

Multiple Choice

The city is using an internal service fund to self-insure its risk financing activities.Claims accrued or paid by this fund are recorded as:

• A) Transfers out.
• B) Operating Expense - Claims.
• C) Special Items - Claims.
• D) Nonoperating Expense - Claims.

---

Definitions:

Supply of Strawberries

The supply of strawberries indicates the total quantity of strawberries that producers are willing and able to sell at a given price over a specific period.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal governmental intervention.

Distribution of Output

The way total production is spread across different agents or locations in the economy.

Consumer Needs

Fundamental requirements that motivate consumer behaviors and decisions in the marketplace.