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:

Inadvertently Overstated

When financial figures are unintentionally reported higher than their actual values.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business assets.

Falling Prices

A situation where the general level of prices of goods and services in an economy is decreasing over time.