In Discrete Presentation, Component Unit

question 39

Multiple Choice

In discrete presentation, component unit

• A) Funds are reported as the same type of funds of the primary government.
• B) Funds are treated as Special Revenue Funds of the primary government since the resources can only be used for the component unit's programs.
• C) Data is presented in the government-wide financial statements separate from the primary government data.
• D) Basic financial statements must always be included in the primary government's comprehensive annual financial report.

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Definitions:

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.

Perpetual Inventory Method

An inventory management system where updates are made continuously to record sales and purchases instantly, maintaining constant and accurate inventory records.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of parent and subsidiary companies into a single document for analysis.

Inventory Transfer

The movement of goods from one location to another, typically between departments or segments within a company.