A measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date is:
A) Unrestricted net position/total revenues.
B) Business-type activities revenues/business-type activities expenses.
C) Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by beginning net position.
D) Net revenues/total expenses.

Question

Quizplus · Accepted Answer

Unrestricted net position/total revenues is a measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date, as it provides an indication of the government's financial health by comparing available resources to the revenues generated.

A Measure of the Adequacy of the Amount of the Government's