According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?
A) The government can determine its own budget.
B) The government can issue debt.
C) The government has corporate powers including the right to sue and be sued.
D) The government has the power to levy taxes.
E) The government can issue preferred stock.

Question

Quizplus · Accepted Answer

The ability to issue preferred stock is a criterion for determining whether a government is legally separate. The other criteria listed (determining its own budget, issuing debt, corporate powers including the right to sue and be sued, and the power to levy taxes) are also criteria for legal separateness according to GASB.

According to the GASB (Governmental Accounting Standards Board), Which One