An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency
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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?
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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The correct answer is c As a component unit Explanation The City of Hanover shou...View the full answer
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