The State has a legally separate State Building Authority which has a board appointed by the Governor.The Authority issues debt in its own name, holds title to buildings in its own name, and leases its building exclusively to the State.In what manner would the Authority be included in the State's Basic Financial Statements?
A)Blended.
B)Discretely presented.
C)Note disclosure only.
D)Not included in any manner.

Question

Quizplus · Accepted Answer

The Authority is a legally separate entity from the State, but it is still considered to be a component unit of the State. As such, it must be included in the State's Basic Financial Statements. The Authority's financial statements should be blended with the State's financial statements.

The State Has a Legally Separate State Building Authority Which