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What Is the Purpose of Analyzing a Government's Financial Condition

Question 42

Multiple Choice

What is the purpose of analyzing a government's financial condition?


A) To reach conclusions about the ability of the government to meet its payroll and pay its creditors in the following year
B) To enable an independent auditor to express a "clean opinion" on the government's financial statements for the year under audit
C) To draw inferences about the future ability of the government to meet its financial obligations as they come due and to provide services at a reasonable level to its individual and corporate citizens
D) To enable the government's management to complete the Management's Discussion and Analysis section of the annual financial report

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