Which of the Following Factors Would Not Indicate That a Potential

question 42

Multiple Choice

Which of the following factors would not indicate that a potential component unit (PCU) is dependent on the primary government?

• A)The primary government provides advice regarding the PCU's budget.
• B)The primary government is obligated to provide financial support to the PCU.
• C)The primary government is obligated for the PCU's debt.
• D)The primary government is entitled to the PCU's resources.

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Definitions:

Indirect Expenses

Costs not directly tied to a product or service, like utilities and rent.

Departments

Departments refer to distinct areas or divisions within a business or organization, each handling specific tasks or responsibilities.

Industries

Broad sectors of the economy categorized according to their primary business activities, such as technology, healthcare, or finance.

Depreciation

The systematic allocation of the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption or wear and tear.