How Should Information About Each Major Discretely Presented Component Unit

question 26

Multiple Choice

How should information about each major discretely presented component unit be presented in the financial statements?

• A) Report only as condensed financial statements reported in the notes to the financial statements.
• B) Report only in single column in the government-wide statements.
• C) Report only in combining financial statements which are included in the primary government's basic financial statements after the fund financial statements.
• D) Report only in a single column in the government-wide statements with condensed financial statements in the notes.

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Definitions:

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Excess Consideration

The amount paid over and above the fair value of net assets acquired in a business acquisition.

Goodwill

An intangible asset that arises when a business is acquired for more than the sum of its identifiable net assets.

Equity Income

Income earned by an investor from an investment in the stock of a company, typically through dividends and the investment's appreciation in value.