Which of the Following Financial Concepts Has Been Defined by the GASB

question 46

Multiple Choice

Which of the following financial concepts has been defined by the GASB as "the probability that a government will meet both its financial obligations to creditors,consumers,employees,taxpayers,suppliers,constituents,and others as they become due and its service obligation to constituents,both currently and in the future"?

• A) Financial condition.
• B) Financial position.
• C) Financial leverage.
• D) Liquidity.

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Definitions:

Wage Rate

The amount of payment that a worker receives per unit of time or per unit of output, often expressed as an hourly or piece-rate wage.

Substitution Effect

The economic theory that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on total output or production when a company expands its operations or when there is an increase in economic activity.

Increase In Rent

An upward adjustment in the payment required for the use of rental property, usually determined by market conditions or lease agreements.