CPA Business Analysis and Reporting (BAR) Question of the Day
Test your knowledge with a hand-picked multiple-choice question.
Metro City bills and collects transit fares and penalties on behalf of a legally separate Regional Transit Authority (RTA). Collected amounts are remitted monthly; Metro has no administrative or direct financial involvement beyond billing and remitting, and the resources are not held for long-term benefit of Metro or specific individuals. At year-end, Metro had collected 2,100,000 not yet remitted to the RTA. Metro prepares its financial statements under GASB. The RTA is not reported as a component unit of Metro, and Metro is not obligated for any RTA debt or deficits.
Which statement classification is correct?
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