If a government derives a large portion of its tax revenues from economy-sensitive taxes,the size of which of the following ratios would be of most concern to a financial analyst?
A)ratio of real property taxes receivable to real property tax revenues
B)ratio of total available fund balance to total revenues
C)ratio of program expenses to total expenses
D)portion of real property taxes collected in the year of the tax levy

Question

Quizplus · Accepted Answer

The ratio of total available fund balance to total revenues would be of most concern because it indicates the government's financial flexibility and ability to withstand economic fluctuations that affect tax revenues.

If a Government Derives a Large Portion of Its Tax