Which of the following is true regarding GASB's definition of the financial reporting entity?
A) The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization.
B) Primary governments may be general-purpose governments such as states, cities, and countiesor special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments.
C) Blending is used to incorporate component units when those component units are, in substance, part of the primary government.
D) All of the above are true.

Question

Quizplus · Accepted Answer

GASB Section 2100 establishes that the financial reporting entity is the primary government together with its component units. The primary government can be a state government, a general-purpose local government, or a special-purpose government. Blending is used to incorporate component units when the component unit is so intertwined with the primary government that they are in substance the same entity.

Which of the Following Is True Regarding GASB's Definition of the Financial