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:

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable deemed likely uncollectible.

Uncollectible Receivables

Accounts receivable that the company does not expect to collect, often recognized as bad debt expense.

Settlement

The process of finalizing a transaction where the buyer pays the seller, and the seller transfers ownership of an asset, or the resolution of a dispute.

Maturity Value

The amount that will be paid to the holder of a financial instrument at the instrument's maturity date, including principal and any accrued interest.