Service Efforts and Accomplishments Reporting Is Relevant Because

question 61

Multiple Choice

Service Efforts and Accomplishments reporting is relevant because:

• A) SEA reporting provides more complete information about a government entity's performance than can be provided by the basic financial statements.
• B) The GASB requires supplemental reporting of service efforts and accomplishments.
• C) Enterprise fund statements do not do a good job of measuring efficiency or effectiveness.
• D) All of the above.

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Definitions:

Debt/Equity Ratio

A fiscal ratio that reflects the comparative amount of equity from shareholders and borrowed funds utilized to support a company's resources.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company’s earnings per share to fluctuations in its operating income, based on its capital structure.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.

EPS

Earnings Per Share (EPS) is a company's net profit divided by the number of common shares outstanding, indicating the company's profitability on a per-share basis.