Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?
A)To determine if the government has complied with bond covenants.
B)To determine if the government has complied with taxing limitations.
C)To determine if the government has complied with donor restrictions on the use of funds.
D)To determine all of the above.

Question

Quizplus · Accepted Answer

Compliance with laws and regulations is important for all of the reasons listed. Bond covenants require the government to comply with certain legal requirements, taxing limitations are imposed by law, and donor restrictions must be followed to ensure proper use of funds.

Users of Government Financial Statements Should Be Interested in Information