As used by the GASB, interperiod equity refers to which of the following? Financial reporting should:
A)Demonstrate compliance with finance-related contractual requirements.
B)Provide information to determine whether current-year revenues were sufficient to pay for current-year services.
C)Demonstrate whether resources were obtained and used in accordance with the government's legally adopted budget.
D)Provide information to assist users in assessing the government's economy, efficiency, and effectiveness.

Question

Quizplus · Accepted Answer

Interperiod equity refers to the concept of balancing the government's resource usage over time to ensure that future generations are not unfairly burdened by the choices of today's government. Financial reporting should provide information on whether current-year revenues were sufficient to pay for current-year services, which is a critical component of interperiod equity. The other options are important in financial reporting but do not directly relate to interperiod equity.

As Used by the GASB, Interperiod Equity Refers to Which