In which of the following situations would a component unit be required to prepare a CAFR, not just the basic financial statements?

Question

Quizplus · Accepted Answer

The Comprehensive Annual Financial Report (CAFR) is a thorough presentation of a government entity's financial condition. It goes beyond the basic financial statements required by GAAP. However, GAAP does not mandate the preparation of a CAFR for any entity, including component units. The decision to prepare a CAFR is typically voluntary and based on the entity's desire to provide a higher level of financial transparency and detail.

In Which of the Following Situations Would a Component Unit