Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?
A) To determine if the government has complied with bond covenants.
B) To determine if the government has complied with taxing limitations.
C) To determine if the government has complied with donor restrictions on the use of funds.
D) To determine all of the above.

Question

Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons? 
A) To determine if the government has complied with bond covenants.
B) To determine if the government has complied with taxing limitations.
C) To determine if the government has complied with donor restrictions on the use of funds.
D) To determine all of the above.

Quizplus · Accepted Answer

All the options listed are valid reasons why users of government financial statements would be interested in information about compliance with laws and regulations. Compliance with bond covenants, taxing limitations, and donor restrictions on the use of funds are all critical aspects of a government's financial and operational integrity.

Users of Government Financial Statements Should Be Interested in Information