Which of the Following Circumstances Would Indicate That a Potential

question 24

Multiple Choice

Which of the following circumstances would indicate that a potential component unit (PCU) should be included as part of the governmental financial reporting entity?

• A)The primary government does not approve the operating budget of the potential component unit.
• B)Officials of the primary government appoint a majority of the members of the governing board of the PCU.
• C)The PCU has sufficient operational and financial dependence that the primary government can impose its will on the PCU.
• D)Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU.

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Definitions:

Electronic Record

A digital version of a patient's medical history, maintained over time, that includes all treatments and health-related information.

Diagnostic Services

Medical services involving the use of tests and procedures to determine the nature or cause of a health condition or disease.

Therapeutic Services

These are treatments and interventions designed to treat illness and improve health in individuals, ranging from medical and surgical treatments to counseling and physical therapies.

Entitativity

The property of a group that makes it seem like a coherent, distinct and unitary entity.