A Self-Insurance Activity That Is Accounted for in an Internal

Multiple Choice

A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the Internal Service Fund is a proprietary fund, the claims will be reported on the statement of revenues, expenses, and change in net position as

A) An operating expense.
B) A nonoperating expense.
C) A contra-revenue to premiums charged.
D) An other financing use.