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:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor.

Operating Expenses

Costs associated with the normal operations of a business, excluding cost of goods sold and direct labor.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets until used.

Accrued Liabilities

Liabilities for expenses that have been incurred but have not yet been paid or recorded through a standard payment transaction.