What Are the Three Broad Sections of a State or Local

question 21

Multiple Choice

What are the three broad sections of a state or local government's CAFR?

• A) Introductory, financial, and statistical.
• B) Financial statements, notes to the financial statements, and component units.
• C) Introductory, statistical, and component units.
• D) Component units, financial, and statistical.
• E) Financial statements, notes to the financial statements, and statistical.

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Definitions:

Conversion

The unauthorized act of taking someone else's property and converting it into one's own use, which infringes on the legal rights of the owner.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a specific sum of money either on demand or at a specified future date.

Cancellation

The act of declaring a contract or agreement null and void, thereby releasing the parties from their obligations under the contract.

Comparative Negligence

A legal doctrine that allocates the responsibility and damages in an accident proportionally to the degree of fault of each party involved.