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Blended and Discretely Presented Component Units May Issue Separate Financial

Question 32

Multiple Choice

Blended and discretely presented component units may issue separate financial statements. Which of the following statements is false related to this provision in GAAP?


A) If a blended or discretely presented component unit issues separate financial statements, they are not required to be reported as part of the primary government's reporting entity.
B) GAAP require component units to report any component units they may have as part of their separately issued financial statements.
C) GAAP do not prevent component units from separately issuing their own financial statements.
D) The primary government must include any component units in their external financial reporting to comply with GAAP.

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