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 counties) or 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 only when those component units are, in substance, part of the primary government.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All of the statements are true regarding GASB's definition of the financial reporting entity. The financial reporting entity may include primary government, component units, joint ventures, or jointly governed organizations. Primary governments may be general-purpose or special-purpose governments that are legally separate and fiscally independent. Blending is used to incorporate component units only when they are, in substance, part of the primary government. Therefore, option D is the correct answer.

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