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:

Assembly Line Workstation

refers to a specific work area within an assembly line designed for the completion of a particular task or the assembly of a particular part of a product.

Product-oriented Layout

A facility layout design where resources and equipment are arranged according to the sequence of operations required to produce a specific product efficiently.

Equipment Utilization

the extent to which machinery and equipment are employed in production, usually measured as a percentage of available time used.

Stability of Demand

The extent to which demand for a product or service is consistent and predictable over time.