During the year Endor 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 self-insurance fund can recognize as revenue is

Question

During the year Endor 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 self-insurance fund can recognize as revenue is

Quizplus · Accepted Answer

The correct amount that the city's self-insurance fund can recognize as revenue is $600,000. This is typically based on the premiums or contributions made to the fund, adjusted for any specific accounting or regulatory guidelines applicable to self-insurance funds.

During the Year Endor City’s Self-Insurance Internal Service Fund Billed