Which of the Following Is Not an Objective of Financial

question 31

Multiple Choice

Which of the following is not an objective of financial reporting by state and local governments?

• A) To assist users in assessing the adequacy of systems and controls.
• B) To assist users in assessing financial condition and results of operations.
• C) To assist financial report users in comparing actual financial results with the legally adopted budget.
• D) To assist in determining compliance with finance-related laws, rules, and regulations.

---

Definitions:

Liabilities

Financial obligations or debts owed by a business or individual to creditors.

Revenue Earned

Income a company receives from its normal business activities, usually from the sale of goods and services to customers.

Financial Statements

Documents that summarize the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the financial reporting process.