Governments must incorporate their blended component units into both the fund and government-wide statements.

Question

Quizplus · Accepted Answer

Blended component units are entities that are legally separate from the primary government but are so intertwined with it that they are essentially part of it. These entities must be included in both the fund and government-wide financial statements to provide a complete and accurate picture of the primary government's financial position and performance.

Governments Must Incorporate Their Blended Component Units into Both the Fund