Which of the Following Is True Regarding Financial Reporting of Special-Purpose

question 9

Multiple Choice

Which of the following is true regarding financial reporting of special-purpose entities?

• A) Special-purpose entities might be included as component units in a primary government's financial statements.
• B) Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements.
• C) Both of the above are true.
• D) Neither of the above is true.

---

Definitions:

Equilibrium Level

The state where market supply and demand balance each other, and, as a result, prices become stable.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Quantity Supplied

The total amount of a specific good or service that is available for purchase at a given price and time.

Product Shortage

A situation where the demand for a product exceeds the supply available in the market.