Which of the Following Is a Primary Objective of Financial

question 23

Multiple Choice

Which of the following is a primary objective of financial reporting by state and local governments?

• A) To provide information that can be used for capital allocation decisions made by external investors.
• B) To report on the legal requirements imposed on the government by its elected officials.
• C) To provide information that can be used to assess a government's accountability.
• D) To fulfill the government's statutory duty to report on cash received and cash disbursed.

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Definitions:

Operating Expenses

are the costs involved in running a business that are not directly tied to the creation of a product or service, such as rent, utilities, and administrative salaries.

Cash Sales

Transactions where payment for goods or services is made at the time of sale in cash or its equivalent.

Cash Expenses

Expenses that a business or individual pays out in cash, excluding non-cash expenses such as depreciation.

Tax Rate

The rate at which taxes are levied on an individual or company.