Under GASB Rules for the Financial Reporting Entity

question 72

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:

Gearshift Lever

A manual control used by the driver to change gears in a vehicle's transmission.

Range Control Button

A component in vehicles that allows the driver to select different drivetrain ranges or modes.

10-speed Transmission

A gearbox with ten possible gear ratios, allowing for a wide range of speeds and improved fuel efficiency.

Gear Ratio Selection

The process of choosing the appropriate gear ratio to achieve desired performance characteristics in machinery or vehicles.