Which of the Following Is an Objective of Financial Reporting

question 12

Multiple Choice

Which of the following is an objective of financial reporting by governmental entities as established by GASB?

• A)Financial reporting should assist users in assessing the management skills of top management.
• B)Financial reporting should assist users in determining if current-period revenues were sufficient to pay for current-period services.
• C)Financial reporting should assist users in evaluating the cash management operations of the governmental entity for the year.
• D)Financial reporting should assist users in assessing whether the government provided appropriate services to its constituents in the current year.

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Definitions:

A.W. Phillips

An economist known for describing the inverse relationship between rates of unemployment and corresponding rates of inflation, which is now known as the Phillips Curve.

United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Rate Of Change

The speed at which a variable changes over a specific period of time.

Sacrifice Ratio

The measure of the decline in annual output required to reduce inflation by one percentage point.