A component unit is a legally separate entity for which a primary government is financially accountable, often included in the government’s financial statements. It serves as a unit of accounting definition, ensuring comprehensive financial reporting. Component units are typically related to governmental entities, such as public universities or municipal utilities, and are integral to understanding the financial position and operations of the primary government.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.