Under GASB Rules for the Financial Reporting Entity

question 15

Multiple Choice

Under GASB rules for the financial reporting entity:

• A) component units are included if the primary government is financially accountable for their operations.
• B) counties are component units of the State Government.
• C) blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements.
• D) component units must be reported in columns (discrete presentation) separate from the funds of a primary government.

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Definitions:

IASB And FASB

The International Accounting Standards Board and the Financial Accounting Standards Board, two organizations involved in setting global and U.S. accounting standards, respectively.

Net Liability Contract Position

The net value of obligations exceeding the value of assets held under a contract, indicating a company's financial liability in the context of that contract.

Exposure Draft

A document issued by regulatory or standard-setting bodies to invite public comment on a proposed new standard or amendment to existing standards before finalization.

Revenue Recognition

Accounting principle determining when revenue should be recorded in the financial statements, typically at the time goods or services are provided.