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44.     (True or false)

State whether each of the following is true or false regarding the financial reporting entity. Explain why the false statements are false.

          a.     An example of a state's ability to impose its will on the operations of a legally separate toll road is its ability to approve the road's proposed increases in toll rates.
          b.     The relationships between two primary governments and a third organization may be such that the third organization can be a component unit of both primary governments.
          c.     Only general-purpose governments, like states, cities, counties, towns, and villages can be primary governments. Special purpose governmental entities, like school districts and hospitals, can never be primary governments.
          d.     When an organization is part of a primary government's financial reporting entity, the accounts of the former are always "blended" with the accounts of the latter; that is, the individual funds of the component unit are added to the funds of the primary government.

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