A city starts a public library that has separate incorporation and gets some of its money for
Question:
A city starts a public library that has separate incorporation and gets some of its money for operations from the state and some from private donations. Indicate whether each of the following independent statements is true or false and briefly explain each answer.
a. If the city appoints 9 of the 10 directors, it must report the library as a component unit.
b. If the library is a component unit and its financial results are shown as part of the governmental activities of the city, it is known as a blended component unit.
c. If the library appoints its own board but the city must approve its budget, the library must be reported as a blended component unit.
Step by Step Answer:
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni