Most citizens and financial statement users do not have a clear understanding of the financial reporting entity whose financial position,results of operations,and cash flows are included in an annual financial report.

Question

Quizplus · Accepted Answer

Most citizens and even accountants whose experience is primarily with business sector entities have little understanding of the overlapping layers of general purpose and special purpose governmental organizations that have some jurisdiction over them. The first note to the audited financial statements will include a description of the reporting entity following the criteria established in GASB Codification 2100.

Most Citizens and Financial Statement Users Do Not Have a Clear