Which of the following is NOT a suggested objective for financial statements for public sector entities?
A)To determine if programs are economical, efficient, and effective.
B)To provide an accounting of financial affairs and resources.
C)To enable evaluation of compliance with legislation.
D)To provide information on financing and investing activities.

Question

Quizplus · Accepted Answer

Determining if programs are economical, efficient, and effective is a suggested objective for performance reports, not financial statements. The other objectives listed - providing an accounting of financial affairs and resources, enabling evaluation of compliance with legislation, and providing information on financing and investing activities - are all suggested objectives for financial statements for public sector entities.

Which of the Following Is NOT a Suggested Objective for Financial