In Which of the Following Situations Would a Component Unit

question 16

Multiple Choice

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

• A) The primary government prepares a CAFR.
• B) The component unit will be issuing general obligation bonds in the coming year.
• C) The component unit has prepared a CAFR in the past.
• D) There are no situations in GAAP where any entity is required to prepare a CAFR.

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Definitions:

Sex Drive

The biological and psychological inclination towards sexual activity and expression; also known as libido.

Alfred Adler

A psychologist and founder of the school of individual psychology, he emphasized the importance of feelings of inferiority and the drive for superiority in human behavior.

Subconscious Influence

The impact on an individual's thoughts, feelings, and behaviors by processes beneath the conscious level of awareness.

Style of Life

A concept introduced by Alfred Adler, suggesting that individuals develop unique methods of achieving self-ideals and goals which guide their behavior.