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

question 127

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 countiesor 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 when those component units are, in substance, part of the primary government.
• D) All of the above are true.

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Definitions:

Debt-To-Equity Ratio

It's a financial indicator that compares the proportions of debt and shareholders' equity in funding company assets.

Total Assets

The aggregate of current and fixed assets held by a corporation.

Total Liabilities

The total amount of financial obligations or debts that a company owes to external parties.

Return On Equity

A financial ratio that measures the profitability of a company in relation to the shareholders' equity, indicating how efficiently a company uses its equity to generate profit.