According to GASB Concepts Statement No

question 70

Multiple Choice

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

• A) The Securities Exchange Commission, the citizenry, and legislative and oversight bodies.
• B) The Securities Exchange Commission, legislative and oversight bodies, and investors and creditors.
• C) The Securities Exchange Commission, the citizenry, and investors and creditors.
• D) The citizenry, legislative and oversight bodies, and investors and creditors.
• E) The citizenry, management, and the Governmental Accounting Office.

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Definitions:

Share

A unit of ownership in a corporation or financial asset that provides an equal distribution in any profits, in the form of dividends, and assets if the company is dissolved.

Operational Efficiency

The ability of an organization to minimize waste and maximize outputs from given inputs, often through improvements in processes and technology.

Residual Claimants

Individuals who personally receive the excess, if any, of revenues over costs. Residual claimants gain if the firm’s costs are reduced or revenues increase.

Market Wages

The prevailing pay rates for work in a particular market or industry, determined by supply and demand dynamics.