After financial ratios are calculated,the results should be compared to any of the following except
A) The same indicator from prior years.
B) Budgeted information for the government for the upcoming year.
C) Comparable government ratios calculated from the Government Finance Officers Association's Financial Indicators Database.
D) Any credit market or other red flag indicators.

Question

Quizplus · Accepted Answer

Comparing financial ratios to budgeted information for the government for the upcoming year is not a relevant comparison as it is forward-looking and hypothetical. The other options (comparing to prior years, comparable ratios from the GFOA database, and credit market or red flag indicators) are all useful comparisons for evaluating the financial health of the government.

After Financial Ratios Are Calculated,the Results Should Be Compared to Any