GASB Accounting and Financial Reporting Standards for Risk Financing Activities

Multiple Choice

GASB accounting and financial reporting standards for risk financing activities provide that an internal service fund should recognize claims expense and a related liability when a claim has been asserted and

A) A municipal court has awarded a judgment to a claimant fund (e.g.,the General Fund) .
B) It is reasonably possible that a loss has been incurred and the amount can be reasonably estimated.
C) It is probable that a loss has been incurred and the amount can be reasonably estimated.
D) A loss has been incurred,but the amount cannot be reasonably estimated.