Because they focus on historical transactions,financial statements are more relevant in evaluating a city's current financial condition than other information in the comprehensive annual financial report.

Question

Quizplus · Accepted Answer

Much useful information is provided in a comprehensive annual financial report outside the financial statements; however, the financial statements (both government-wide and fund) and notes to the financial statements are essential in calculating the ratios described in Chapter 10.

Because They Focus on Historical Transactions,financial Statements Are More Relevant