Which of the following factors would not indicate that a potential component unit (PCU) imposes a financial burden or provides a financial benefit to the primary government?
A) The primary government is entitled to its share of any dividends distributed by the PCU.
B) The primary government is obligated to provide financial support to the PCU.
C) The primary government is obligated for the PCU's debt.
D) The primary government is entitled to the PCU's resources.

Question

Quizplus · Accepted Answer

Factors indicating a financial burden or benefit to the primary government from a potential component unit (PCU) include obligations for the PCU's debt, entitlement to the PCU's resources, and obligations to provide financial support. However, being entitled to a share of any dividends distributed by the PCU does not inherently indicate a financial burden but rather a potential financial benefit.

Which of the Following Factors Would Not Indicate That a Potential