D the county aviation authority is a component unit

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Unformatted text preview: is created. d. The County Aviation Authority is a component unit of the City of Middle Falls. If the city is legally obligated to assume debt responsibilities in the event of a default a financial burden has been imposed on the city; therefore, the Aviation Authority would be considered a component unit. The opinion that the likelihood of default by the Aviation Authority is remote does not affect the decision. e. 9-2. a. Help for Kids is not a component unit of Alice County. Through its request the county is performing what is referred to as a “ministerial” or compliance function (GASB, Codification, par 2100.116). A compliance function is not considered to result in fiscal dependence. a. The two primary governmental activity revenue sources are property taxes and sales taxes. Property taxes represent 17 percent and sales taxes represent 32 percent of governmental activities revenues. b. Students will have interpreted the information provided in a variety of ways. The following discussion provides some points students may have con...
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This note was uploaded on 05/20/2010 for the course ACCOUNTING 580 taught by Professor Waymire during the Spring '10 term at Northern Virginia.

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