A regulatory agency would use the external financial statements of a local government for which of the following purposes?
A) To ensure that the entity is spending and receiving resources in accordance with laws, regulations or policies.
B) To determine how resources should be allocated.
C) To exercise general oversight responsibility.
D) To do all of the above.

Question

A regulatory agency would use the external financial statements of a local government for which of the following purposes? 
A) To ensure that the entity is spending and receiving resources in accordance with laws, regulations or policies.
B) To determine how resources should be allocated.
C) To exercise general oversight responsibility.
D) To do all of the above.

Quizplus · Accepted Answer

Regulatory agencies use external financial statements of local governments to ensure compliance with laws and regulations (A), to inform decisions on resource allocation (B), and to exercise general oversight (C). Therefore, all of the options are correct purposes.

A Regulatory Agency Would Use the External Financial Statements of a Local