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:

Oral Contract

An agreement made through spoken communication between parties, rather than in writing, yet is legally binding.

Project

A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Eighteen Months

A time period equal to one and a half years.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the involved parties to be enforceable.