Which of the Following Is NOT a Purpose of External

question 34

Multiple Choice

Which of the following is NOT a purpose of external financial reporting by governments?

• A) Assess financial condition.
• B) Compare actual results with the budget.
• C) Assess the ability of elected officials to effectively manage people.
• D) Evaluate efficiency and effectiveness.

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Definitions:

Consumer Surplus

The gap between what consumers are ready and financially able to spend on a good or service and what they actually spend.

Tax

An obligatory fee or some other type of financial imposition placed on a taxpayer by a government organization, designed to cover the cost of government activities and diverse expenditures in public services.

Per-unit Burden

The financial impact or cost of a tax, fee, or regulation expressed on a per unit basis.

Tax

Compulsory contributions made to government revenues, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.