Which of the Following Potential Component Units Would Not Be

question 29

Multiple Choice

Which of the following potential component units would not be reported as blended component unit of the county?

• A) A hospital which is the primary health care provider for the county residents and whose board is appointed by the county.
• B) A recreation district where the governing board of the county serves as its governing board and the management of the country operates the recreation district.
• C) A financing authority that exclusively serves the county.
• D) A school district whose debt will be repaid by the county.

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Definitions:

Compounded Monthly

This refers to the interest calculation method where interest is added to the principal balance monthly, causing the amount of interest to grow each month based on the new balance.

Mortgage

A loan secured by real property, typically real estate, that the borrower is obliged to pay back with a predetermined set of payments.

Compounded Monthly

Describes a situation where interest is added to the principal balance of a loan or deposit on a monthly basis, increasing the amount of future interest.

Compounded Monthly

An interest calculation method where the interest earned each month is added to the principal, becoming the base for calculating future interest.