Which of the Following Is Not One of the Objectives

question 131

Multiple Choice

Which of the following is not one of the objectives of Federal Financial Reporting,as outlined in SFFAC 1,which was issued by the FASAB?

• A) Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the reporting entity.
• B) Financial reporting should enable evaluation of the success rate of programs
• C) Financial reporting should reveal whether financial systems and controls are adequate
• D) Financial reporting should demonstrate accountability regarding raising and expending money according to budgetary process and laws and regulations

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Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity of the business.

Financial Data

Quantitative information about financial conditions, performance, and transactions of a business, individual, or entity.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Financial Data

Information about financial transactions, including income, expenses, assets, and liabilities, used for analysis and decision-making.