Which of the Following Is NOT a Reason Why Users

question 8

Multiple Choice

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

• A)To determine the ability of the entity to meet its obligations.
• B)To determine the ability of the entity to continue to provide services.
• C)To predict future fiscal solvency.
• D)To evaluate the overall profitability of the entity.

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Definitions:

Improper Fraction

A fraction in which the top number is greater than or equal to the bottom number.

Mixed Fraction

A mathematical expression combining a whole number and a proper fraction.

Mixed Fraction

A number consisting of an integer and a proper fraction (e.g., 3 1/2).

Whole Number

Non-negative integers, including zero, without fractions or decimals, representing complete units.