Author Question: If the total of the Income Statement Credit column, before determining net income or net loss, ... (Read 61 times)

Zoey63294 · **on:** Jul 5, 2018

If the total of the Income Statement Credit column, before determining net income or net loss, exceeds the total of the Income Statement Debit column, the result is a net loss for the year.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A city experienced several auto damage claims during its year ended December 31, 2012 . The total amount claimed was 600,000 . No cash was paid out in 2012 . However, claims totaling 200,000 were settled by December 31, 2012 .

These claims were settled for 80,000, and were scheduled for payment on January 15, 2013 . City attorneys felt that the remaining 400,000 of claims could be settled during 2013 for about 160,000 . How much should the city recognize as claims expenses in its government-wide financial statements for 2012?
a. 0
b. 80,000
c. 240,000
d. 480,000