Which of the Following Circumstances Would Indicate That a Potential

question 5

Multiple Choice

Which of the following circumstances would indicate that a potential component unit (PCU) should be included as part of the government financial reporting entity?

• A) The primary government is entitled to the resources of the PCU.
• B) Officials of the primary government appoint a majority of the members of the governing board of the PCU.
• C) The primary government significantly influences the programs and activities of the PCU.
• D) Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU.

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Definitions:

Linear Force

A force that acts in a straight line, applying push or pull in a single direction to move or support objects.

FMVSS 121

A U.S. Federal Motor Vehicle Safety Standard pertaining to the performance and design requirements for air brake systems in heavy trucks and buses.

Legislation

Laws and statutes enacted by a legislative body to regulate, authorize, sanction, grant, declare, or restrict.

FMVSS 121

A regulation set forth by the Federal Motor Vehicle Safety Standards concerning air brake systems in heavy vehicles, ensuring safety and performance.