During the year Eustoma City's self-insurance internal service fund billed the general fund $600,000 for premiums,...

Transcribed Image Text:

During the year Eustoma City's self-insurance internal service fund billed the general fund $600,000 for "premiums," of which $60,000 was for catastrophic losses and the balance was the premium computed on an actuarially determined basis. During the year the city incurred $500,000 in claims losses. The total amount transferred to the self-insurance fund by the general fund was $620,000. The amount the city's general fund can recognize as an expenditure is During the year Eustoma City's self-insurance internal service fund billed the general fund $600,000 for "premiums," of which $60,000 was for catastrophic losses and the balance was the premium computed on an actuarially determined basis. During the year the city incurred $500,000 in claims losses. The total amount transferred to the self-insurance fund by the general fund was $620,000. The amount the city's general fund can recognize as an expenditure is

Answer rating: 100% (QA)

To determine the amount that the citys general fund can recognize as an expenditure we need to consi... View the full answer