Which of the following is true regarding the financial reporting entity of a state or local government?
A) Many component units are discretely presented, rather than blended.
B) A school district could never be a primary government.
C) Only a primary government is reported in the government-wide statements.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Many component units, such as public universities or transportation authorities, are presented separately in the financial statements as discretely presented component units (DPCUs).

B and C are both false. A school district may be a primary government, and both primary governments and component units are included in the government-wide statements.

Which of the Following Is True Regarding the Financial Reporting