For each of the following financial ratios that are based on comprehensive annual financial report (CAFR) information by selecting the appropriate letter of the explanation for that ratio. Answers can only be used once.
A. An indicator of interperiod equity.
B. An indicator of the government's commitment to replacement of capital assets.
C. An indicator of the government's reliance on revenues it does not directly control.
D. A measure of the degree to which government assets have been funded with debt.
E. An indicator of the government's ability to pay its 60- to 90-day obligations.
F. A measure of the government's capacity to issue debt.
G. A measure of capital asset useful service life.
H. A measure of the government's liquidity.
I. An indicator of taxpayer debt burden.
J. An indicator of the government's ability to withstand financial emergencies.
________ 1. General fund balances/General Fund operating revenues
________ 2. (Cash + short-term investments)/Current liabilities
________ 3. General obligation long-term debt/Assessed valuation
________ 4. Capital outlay from operating funds/Operating expenditures
________ 5. General bonded debt/Legal debt limit
________ 6. Accumulated depreciation/Average cost of depreciable assets
________ 7. Net revenues/Total expenses
________ 8. Charges for services/Total revenues
________ 9. Total liabilities/Total assets
________ 10. Current assets/Current liabilities
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q44: "Benchmarking is a simple method for comparing
Q45: How do credit analysts assist decision makers
Q46: "Financial statements are virtually useless in evaluating
Q47: Explain the importance of evaluating government financial
Q48: Describe some ratios that can be calculated
Q50: Select the key term that relate to
Q51: Which of the following governments would have
Q52: Identify the following factors that affect
Q53: Distinguish and describe key financial performance concepts,
Q54: Which of the following financial capability indicators
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents