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) Credit analyst measures or other red flag indicators.

Question

Quizplus · Accepted Answer

Financial ratios should be compared to prior year's results, comparable ratios from other government entities, and credit analyst measures or other red flag indicators. However, budgeted information for the upcoming year is not a relevant comparison for financial ratios, as it is not a measure of past performance or current financial health.

After Financial Ratios Are Calculated, the Results Should Be Compared