Which of the Following Kinds of Information Is Not Included

question 64

Multiple Choice

Which of the following kinds of information is not included within the scope of a financial statement audit of a state or local government?

• A) Governmental activities financial information.
• B) Management's discussion and analysis (MD&A).
• C) Major funds financial information.
• D) Business-type activities financial information.

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Definitions:

Recession

A recession is an economic downturn spread across the economy lasting more than a few months, often visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Booming Economy

A fast-growing economy characterized by rapid increases in production, sales, and typically, employment levels.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

Investment

An investment refers to the allocation of resources, usually money, in expectation of generating an income or profit, involving assets such as stocks, bonds, real estate, or commodities.