A measure of whether the government lived within its means in the measurement year,or was required to use prior year resources to fund a portion of current year costs,or shifted the funding of some current year costs to future periods,is
A)Business-type activities revenues/business-type activities expenses.
B)Unrestricted net assets/total revenues.
C)Total revenues/total expenditures.
D)Total net assets (governmental activities and business-type activities)less total net assets at the beginning of the year.

Question

Quizplus · Accepted Answer

Total revenues represent the total amount of resources that the government received during the measurement year, while total expenditures represent the total amount of resources that the government spent during the measurement year. If the government lived within its means, total revenues should be greater than or equal to total expenditures. If the government had to use prior year resources to fund a portion of current year costs or shifted the funding of some current year costs to future periods, the total expenditures would be greater than the total revenues, indicating that the government did not live within its means. Therefore, the comparison of total revenues and total expenditures provides a measure of whether the government lived within its means in the measurement year.

A Measure of Whether the Government Lived Within Its Means