Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units. To explain :The component units of a government, and how are they reported.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Bucket Corporation had the following income statement: Sales $53,000 Less: Variable costs $28,000 Contribution margin $25,000| Less: Fixed costs $16,000 Net income $9,000 Bucket's operating leverage is

What is the adjusting cost of goods sold for the year?

Question

Answer 2

Question

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Answer 6

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Answer 7

Chapter 18, Problem 18.12Q

To determine

Financial accountability: GASB 14 states the primary government’s financial accountability. It is evident when the primary government appoints a majority of organization’s governing board. Thus it has effective control over organization with its ability to impose removal or appointment of members of the organizations governing body. Approve or modify organization’s budget, veto or overrule the decisions of governing body and appointment of persons responsible for organizations day-to-day operations. These indicates that when primary governmental unit is accountable for independent organization, those organizations should be included in primary government’s financial statements as component units.

To explain:The component units of a government, and how are they reported.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 18 - In what circumstances would a governmental unit...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - What is the basis of accounting in the proprietary...Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - What are the primary differences between a...Ch. 18 - Prob. 18.9Q Ch. 18 - Prob. 18.10Q

Solution Summary: The author explains that GASB 14 states the primary government's financial accountability. Component units are separate government entities for which primary governments are financially accountable.

Want to see the full answer?

Chapter 18 Solutions