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.
D) Total revenues/total expenses.

Question

Quizplus · Accepted Answer

The unrestricted net position/total revenues ratio measures the adequacy of the government's unrestricted net position by comparing it to the total revenues, indicating how well the government can cover its obligations with its available resources.

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