Koch County Has Two Component Units-An Electric Utility and a Housing

question 14

Essay

Koch County has two component units-an Electric Utility and a Housing Authority. In its separate financial statements, the Electric Utility reports using a single enterprise fund. The Housing Authority reports using a general fund, a special revenue fund, and a debt service fund.
a. Assuming that both component units meet the criteria for presentation as discretely presented component units
-Where should their financial information be presented in the county's financial report?
-How would the Housing Authority's general fund be reported?
b. Assuming that the Electric Utility meets the criteria for reporting as a major component unit, what is the most likely way in which the city would meet the additional disclosure requirement for the utility? What are two other ways that the disclosure requirements could be met?
c. Assuming that the Housing Authority meets the criteria for presentation as a blended component unit
-Where should the authority's financial information be presented?
-How would the authority's general fund be reported?

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Definitions:

Kubler Ross

Refers to Elisabeth Kübler-Ross, a psychiatrist known for her work on the five stages of grief: denial, anger, bargaining, depression, and acceptance.

Denial

A defense mechanism where an individual refuses to acknowledge reality or truths, often to avoid confronting uncomfortable emotions or facts.

Coping Skills

Techniques or strategies that individuals use to manage stressful situations, emotions, or challenges.

Spirituality

A broad concept involving a sense of connection to something bigger than oneself, which can involve religious beliefs, personal growth, or a search for meaning in life.