Which of the Following Is True Regarding the Financial Reporting

question 86

Multiple Choice

Which of the following is true regarding the financial reporting entity of a state or local government?

• A) Many component units are discretely presented, rather than blended.
• B) A school district could never be a primary government.
• C) Only a primary government may be the nucleus of a financial reporting entity.
• D) All of the above are true.

---

Definitions:

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Opportunity Costs

The cost of choosing one option over another, typically the most valuable foregone alternative.

Consistency

The quality of always behaving or performing in a similar way, maintaining uniformity across situations or time.

Intentionality

The state of being deliberate or purposeful in one's actions or decisions, implying a conscious intent.