If the adjustment of the unearned rent account at the end of the period to recognize the amount of rent earned is inadvertently omitted, the net income for the period will be understated.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which of the following scenarios does not describe governing boards of a primary government and a potential component unit that are substantially the same?
a. A city's governing board are the ex-officio governing board members of the Library District.
b. A county has a seven-member board. Five of these board members serve on an eight-member authority board.
c. A county has a seven-member board. Three of these board members serve on a five-member authority board.
d. There are seven members serving on the city council. Five of these council members are the entire governing board of a historical district board.
e. Both items b and c do not describe governing boards that are substantially the same.
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