The county created a legally separate county hospital authority. Members of the board of the county hospital are elected in county-wide elections. The county must approve the budget of the hospital, but the hospital receives no financial support from the county, except that the county pays the hospital bills for county indigents. All revenues of the hospital are user fees. In what manner would the hospital be included in the county's basic financial statements?
A) Blended.
B) Discretely presented.
C) Note disclosure only.
D) Not included in any manner.

Question

Quizplus · Accepted Answer

The hospital would be included in the county's basic financial statements in a discretely presented manner because it is a legally separate entity for which the county is financially accountable, and its relationship with the county does not meet the criteria for blending.

The County Created a Legally Separate County Hospital Authority