One of the most important reasons to evaluate the financial performance of a government is to
A) Determine if property taxes and other revenue sources should be increased.
B) Assign responsibility for success or failure of the government to certain parties.
C) Determine whether the government is accomplishing its mission.
D) Have an early warning of impending financial difficulty for a diverse set of decision makers.

Question

Quizplus · Accepted Answer

Evaluating the financial performance of a government provides an early warning of impending financial difficulty for decision makers, such as policymakers, officials and investors, allowing them to take proactive measures to mitigate the situation. This helps to prevent a crisis in the future, and ensures that the government can effectively carry out its mission. Option A is incorrect as the evaluation of financial performance goes beyond revenue sources, while option B is incorrect as assigning responsibility for failure or success isn't the primary goal of financial evaluation. Option C is also incorrect as it is not the primary goal of financial evaluation, but rather a by-product of it.

One of the Most Important Reasons to Evaluate the Financial