Which of the following is true regarding the financial reporting entity of a state or local government?
A) Many component units are discretely presented, rather than blended.
B) A school district could never be a primary government.
C) Only a primary government may be the nucleus of a financial reporting entity.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Many component units of a state or local government are discretely presented, rather than blended. This means that their financial information is reported separately in the financial statements. B is incorrect because a school district can be a primary government if it meets certain criteria, such as having the authority to issue debt independently. C is incorrect because both primary and component units can be part of a financial reporting entity.

Which of the Following Is True Regarding the Financial Reporting