The city created a legally separate entity to operate a county hospital. The city council appoints a voting majority of the board of the hospital. The city cannot impose its will on the hospital and there is no potential for a financial benefit or financial burden to the city. In what manner would the hospital be included in the city's basic financial statements?
A) Blended.
B) Discretely presented.
C) Only by note disclosure of the relationship.
D) Not included in any manner.

Question

Quizplus · Accepted Answer

The hospital is a legally separate entity and there is no potential for a financial benefit or financial burden to the city. Therefore, the hospital would only be included in the city's basic financial statements by note disclosure of the relationship.

The City Created a Legally Separate Entity to Operate a County