How Does the Use of the Equity Method Affect the Investor's

question 72

Essay

How does the use of the equity method affect the investor's financial statements?

Recognize the components included and excluded from government-wide statements.

Understand criteria for identifying primary governments and special-purpose governments.

Distinguish between the financial reporting requirements for public and private colleges and universities.

Understand the principles of recognizing and measuring liabilities and expenses related to government operations, including pensions and landfill closure/post-closure costs.

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Definitions:

Run-on

A grammatically faulty sentence in which two or more main clauses are joined without an appropriate conjunction or punctuation.

Compound Sentence

A sentence that has at least two independent clauses, usually connected by a conjunction or punctuation.

Independent Clauses

Sentences or clauses that can stand alone because they contain a subject and a predicate and express a complete thought.

Dependent Clause

A group of words that contains a subject and a verb but does not express a complete thought and cannot stand alone as a sentence.