Which of the following financial concepts has been defined by the GASB as "the probability that a government will meet both its financial obligations to creditors,consumers,employees,taxpayers,suppliers,constituents,and others as they become due and its service obligation to constituents,both currently and in the future"?
A) Financial condition.
B) Financial position.
C) Financial leverage.
D) Liquidity.

Question

Quizplus · Accepted Answer

The GASB has defined financial condition as the overall health of a government's financial status including its ability to meet its financial obligations and service commitments, both presently and in the future. Options B, C, and D are financial terms but do not encompass the entirety of what financial condition entails, making option A the best choice.

Which of the Following Financial Concepts Has Been Defined by the GASB