According to the GASB, which of the following financial concepts can be defined as the probability that a government will meet its financial obligations, both currently and in the future?
A) Financial condition.
B) Financial position.
C) Financial leverage.
D) Liquidity.

Question

Quizplus · Accepted Answer

The concept of financial condition refers to the probability of a government meeting its financial obligations, both currently and in the future. Financial position refers to the government's resources and obligations at a specific point in time, financial leverage refers to the use of debt to finance activities, and liquidity refers to the ability of a government to meet its short-term obligations with available resources.

According to the GASB, Which of the Following Financial Concepts