The accounting system used by a state or local government must make it possible
A)To present fairly the financial position and results of financial operations of the government as a whole,as well as fund financial activity in conformity with GAAP,and to demonstrate compliance with finance-related legal and contractual provisions.
B)To prepare financial statements as required by the Financial Accounting Standards Board.
C)To prepare consolidated accrual basis statements for the government as a whole.
D)To provide Web-based bond offering statements to investment firms.

Question

Quizplus · Accepted Answer

The accounting system used by a state or local government must be able to present a fair financial position and results of financial operations of the government as a whole and fund financial activity in conformity with GAAP (Generally Accepted Accounting Principles). It should also demonstrate compliance with finance-related legal and contractual provisions. Other options such as B, C, and D might be necessary but not sufficient to meet the requirements of a government accounting system.

The Accounting System Used by a State or Local Government