Which of the Following Is NOT an Objective of Financial

question 9

Multiple Choice

Which of the following is NOT an objective of financial reporting by governmental entities as established by GASB?

• A)Financial reporting should assist users in determining if current period revenues were sufficient to pay for current-period services.
• B)Financial reporting should assist users in assessing the management skills of top management.
• C)Financial reporting should assist users in evaluating the operating results of the governmental entity for the year.
• D)Financial reporting should assist users in assessing the level of services that can be provided by the governmental entity and its ability to meet its obligations as they come due.

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Definitions:

Z

In statistics, typically refers to a standard score indicating how many standard deviations an element is from the mean.

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or effect exists between certain characteristics, conditions, or variables.

Significance Level

The significance level, also known as alpha, is a pre-determined threshold for statistical significance, used to decide whether an observed effect is not due to chance.

P-values

A numerical measure that helps in determining the significance of results obtained in statistical hypothesis testing, indicating the probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.