A not-for-profit organization could be reported as a component unit of a primary government.

Question

Quizplus · Accepted Answer

A not-for-profit organization could be reported as a component unit of a primary government if the primary government is financially accountable for the organization or if the organization provides services entirely or almost entirely to the primary government. In this case, the not-for-profit organization would be included in the primary government's financial statements as a component unit.

A Not-For-Profit Organization Could Be Reported as a Component Unit