Which of the following ratios would be most helpful in assessing the operating position of a government entity?
A) Net tax-supported long-term debt/population.
B) Own source revenues/total revenues.
C) Debt service expenditures/total expenditures.
D) General Fund balance/General Fund operating revenues.

Question

Quizplus · Accepted Answer

The General Fund balance/General Fund operating revenues ratio provides a good measure of the government entity's ability to cover its operating expenses and debt obligations. A higher ratio indicates better financial health and greater flexibility for the entity in meeting its financial obligations. The other ratios may provide useful information, but they do not directly relate to the operating position of the entity.

Which of the Following Ratios Would Be Most Helpful in Assessing