Government-Wide Financial Statements Help Users Do All but Which of the Following

question 21

Multiple Choice

Government-wide financial statements help users do all but which of the following?

• A)Relate cash receipts and disbursements to the acquisition of long-lived assets.
• B)Assess the finances of the government in its entirety,including the year's operating results.
• C)Determine whether the government's overall financial position improved or deteriorated.
• D)Evaluate whether the government's current-year revenues were sufficient to pay for current-year services.
• E)Make better comparisons between governments.

---

Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus how much they actually receive.

Price

The budgeted sum anticipated, imposed, or tendered in indemnity for something.

Surplus Amount

The excess quantity of a product that occurs when the supply of the product exceeds the demand for it at a given price.

Consumer Surplus

A measure of the difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.