Which of the Following Is Evidence of Fiscal Independence for the Purpose

question 47

Multiple Choice

Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?

• A) The potential component unit is precluded from issuing long-term debt.
• B) The potential component unit raises its own taxes without the approval of the primary government.
• C) The potential component unit names its board of directors without the approval of the primary government.
• D) The potential component unit sets user charges with the approval of the primary government.

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Definitions:

Calcium Carbonate

A chemical compound (CaCO3) found in rocks as the minerals calcite and aragonite and is the main component of pearls, shells of marine organisms, snails, and eggs.

Seawater

The salty water that fills the oceans and seas, composed of a complex mixture of dissolved minerals and organic compounds.

Chert Formation

The process by which chert, a hard, sedimentary rock composed primarily of silicon dioxide, is formed, typically from the accumulation of silica from biological sources or chemical precipitation.

Silica-rich Organisms

Organisms, such as certain diatoms and sponges, that have skeletons made predominantly of silica (SiO2) compounds.