Which of the Following Organizations Should Not Be Included as Part

question 11

Multiple Choice

Which of the following organizations should not be included as part of the governmental reporting entity?

• A)A primary government.
• B)Legally separate organizations for which the primary government is financially accountable.
• C)Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
• D)Organizations which are legally and fiscally independent of a primary government.

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Definitions:

Expiration Time

The specific date and time when an option, futures contract, or similar financial instrument becomes void and ceases to trade.

Exercise Price

The price at which the holder of an option can buy or sell the underlying security.

Cash Dividends

Payments made by a corporation to its shareholder members. It denotes the distribution of a portion of the company's earnings.

Home Mortgage Securitization

The process of bundling home loans into securities that are then sold to investors.