Which of the Following Is True Regarding Component Units

question 18

Multiple Choice

Which of the following is true regarding component units?

• A) Component units could include towns, school districts, counties, and municipalities.
• B) Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements).
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Excess Reserves

Banks' reserves that are greater than the minimum regulatory requirement, not needed to fulfill lending demands.

Reserve Requirement

The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank.

Lend Out

The act of providing money or resources to another party with the expectation that the money or resources will be returned, often with interest.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.