The financial reporting entity is composed of
A)The primary government.
B)The primary government and all legally separate governments for which the primary government is financial accountable.
C)The primary government and all legally separate organizations for which the primary government is financially accountable.
D)The primary government, all legally separate organizations for which the primary government is financially accountable and any organizations whose omission would cause the primary governments financial statements to be misleading or incomplete.

Question

Quizplus · Accepted Answer

The financial reporting entity includes the primary government, legally separate organizations for which the primary government is financially accountable, and any other organizations whose omission would cause the financial statements to be misleading or incomplete. This definition is in accordance with GASB Statement No. 14, The Financial Reporting Entity, which establishes the requirements for identifying and reporting on the financial activities of a reporting entity.

The Financial Reporting Entity Is Composed of