The financial reporting entity is composed of
A) The primary government.
B) The primary government and all legally separate governments for which the primary government is financially accountable.
C) The primary government and all legally separate organizations for which the primary government is financially accountable.
D) The primary government, all legally separate organizations for which the primary government is financially accountable, and any organizations whose omission would cause the primary government's financial statements to be misleading or incomplete.

Question

Quizplus · Accepted Answer

The financial reporting entity includes the primary government, all legally separate organizations for which the primary government is financially accountable, and any organizations whose exclusion would lead to incomplete or misleading financial statements. This comprehensive approach ensures transparency and accountability in public sector financial reporting.

The Financial Reporting Entity Is Composed of