Financial statements are more relevant in evaluating a city's current financial condition because they focus on historical transactions rather 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.

Financial Statements Are More Relevant in Evaluating a City's Current