The text notes that two consecutive years of operating deﬁcits are generally seen by analysts as a sign of ﬁscal stress. Suppose that a government has had several years of general fund surpluses. Are they necessarily a sign of ﬁnancial strength?
Answer to relevant QuestionsMultiple Choice Questions 1. Rule 203 of the AICPA’s Code of Professional Conduct pertains to a. CPAs’ independence b. Authorities designated to establish accounting standards c. Standards of competency d. Solicitation ...What are major funds? In what keys ways are major funds reported differently than non-major funds? True or false: A government’s unassigned general fund balance at year-end is ordinarily indicative of the amount that the government has available for appropriation in future years. Explain, and provide an example to ...How should governments report capital projects and debt service activities in their government wide statements? What is meant by ﬁscal capacity and ﬁscal effort? Why are they of signiﬁcance in assessing a government’s economic condition?
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