Under GASB rules for the financial reporting entity:
A) Component units must be reported in columns discrete presentation separate from the funds of a primary government.
B) Counties are component units of the State Government.
C) Blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements.
D) Component units are included if the primary government is financially accountable for their operations.

Question

Quizplus · Accepted Answer

GASB standards provide two methods for including component unit financial information: blending and discrete presentation. Counties can be a primary government. The financial reporting entity is the primary government together with its component units. Component units are legally separate organizations for which the primary government is financially accountable.

Under GASB Rules for the Financial Reporting Entity