Which of the Following Is True Regarding GASB's Definition of the Financial

question 129

Multiple Choice

Which of the following is true regarding GASB's definition of the financial reporting entity?

• A) The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization.
• B) Primary governments may be general-purpose governments (such as states, cities, and counties) or special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments.
• C) Blending is used to incorporate component units only when those component units are, in substance, part of the primary government.
• D) All of the above are true.

---

Definitions:

Disputed Defect

A flaw or fault in a product or system that is contested or disagreed upon by parties involved.

Negligent Upkeep

Failure to properly maintain or care for property or equipment, which can lead to damage or injury.

Common Areas

Spaces within a building or development that are available for use by all occupants or members, such as lobbies, hallways, and recreational facilities.

Breaching The Lease Agreement

Violation of the terms of a lease agreement, which may result in legal consequences for the violator.