Which of the following is an objective of financial reporting by governmental entities as established by GASB?
A)Financial reporting should assist users in assessing the management skills of top management.
B)Financial reporting should assist users in determining if current-period revenues were sufficient to pay for current-period services.
C)Financial reporting should assist users in evaluating the cash management operations of the governmental entity for the year.
D)Financial reporting should assist users in assessing whether the government provided appropriate services to its constituents in the current year.

Question

Quizplus · Accepted Answer

GASB's objective for financial reporting for governmental entities is to provide information to assist users in assessing the government's accountability for its resources and its financial performance, as well as its ability to provide services and its fiscal sustainability. Option B aligns with this objective by providing information on the sufficiency of current-period revenues to cover current-period services, which is an important aspect of accountability and financial performance. The other options do not directly relate to these objectives.

Which of the Following Is an Objective of Financial Reporting