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:

Materials Inventory

The raw materials, work-in-process, and finished goods that a company holds for the purpose of production.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of goods.

Factory Machinery

Heavy equipment and tools used in a manufacturing or production environment to produce goods.

Factory Overhead Cost

Expenses related to the operation of a manufacturing facility that are not directly tied to a specific product, including utilities, depreciation, and maintenance.