Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 3

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