Which of the following organizations should not be included as part of the governmental reporting entity?
A)A primary government.
B)Legally separate organizations for which the primary government is financially accountable.
C)Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
D)Organizations which are legally and fiscally independent of a primary government.

Question

Quizplus · Accepted Answer

Organizations which are legally and fiscally independent of a primary government should not be included as part of the governmental reporting entity, as they are not financially accountable to the primary government and their inclusion would not be necessary for the completeness or accuracy of the financial statements.

Which of the Following Organizations Should Not Be Included as Part