Which of the following is an objective of financial reporting by state and local governments as established by the GASB? Financial reporting should assist users in
A)Assessing the management skills of top management.
B)Determining if current-period revenues were sufficient to pay for current-period services.
C)Evaluating the cash management operations of the government for the year.
D)Assessing whether the government provided appropriate services to its constituents in the current year.

Question

Quizplus · Accepted Answer

One of the objectives of financial reporting by state and local governments established by the GASB is to assist users in determining if current-period revenues were sufficient to pay for current-period services. This helps users assess the government's financial health and ability to provide services to its constituents. Assessing management skills, evaluating cash management operations, and determining the appropriateness of services provided are also important, but not explicitly stated as objectives by the GASB.

Which of the Following Is an Objective of Financial Reporting