An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment agency in its comprehensive annual financial report? Choose the correct.a. Not at all because the agency is legally separate.b. As a part of the general fund.c. As a component unit.d. As a related organization.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment
agency in its comprehensive annual financial report? Choose the correct.
a. Not at all because the agency is legally separate.
b. As a part of the general fund.
c. As a component unit.
d. As a related organization.

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