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:

Income Levels

Categorizations of individuals or groups based on their earnings from work, investments, or other sources.

Sexual Intercourse

A physical activity involving the sexual organs of at least two people, often associated with reproduction and intimacy.

Sexually Compatible

When two individuals have mutual satisfaction and compatibility in their sexual desires, preferences, and practices.

Male-male Friendships

Social relationships between men characterized by companionship, emotional bonds, and mutual support.