Governmental Accounting Questions and
Answers Graded A+
Which of the following best describes the role that accounting, financial reporting,
and the financial statement audit play for state and local governments?
A. They compromise a comprehensive framework of internal control.
B. They provide the informational infrastructure of public finance.
C. They serve as a public-sector performance management system. - Correct
answer-B. They provide the informational infrastructure of public finance.
Reliable information is needed to make informed financial decisions. Accounting,
financial reporting, and the financial statement audit together provide that
information. Thus, accounting, financial reporting and the financial statement audit
serve as the informational infrastructure of public finance.
Who is primarily responsible for accounting?
A. The governing body
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, B. The independent auditor
C. Management - Correct answer-C. Management
Accounting for the management of financial resources is primarily the
responsibility of those who manage them.
Who is primarily responsible for financial reporting?
A. The governing body
B. The independent auditor
C. Management - Correct answer-C. Management
Those entrusted with the management of financial resources are primarily
responsible for reporting on the stewardship of the resources committed to their
care.
Which of the following best describes the relationship between accounting and
financial reporting?
A. The two terms are essentially interchangeable.
B. The two terms are complementary but distinct.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
Which of the following best describes the role that accounting, financial reporting,
and the financial statement audit play for state and local governments?
A. They compromise a comprehensive framework of internal control.
B. They provide the informational infrastructure of public finance.
C. They serve as a public-sector performance management system. - Correct
answer-B. They provide the informational infrastructure of public finance.
Reliable information is needed to make informed financial decisions. Accounting,
financial reporting, and the financial statement audit together provide that
information. Thus, accounting, financial reporting and the financial statement audit
serve as the informational infrastructure of public finance.
Who is primarily responsible for accounting?
A. The governing body
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, B. The independent auditor
C. Management - Correct answer-C. Management
Accounting for the management of financial resources is primarily the
responsibility of those who manage them.
Who is primarily responsible for financial reporting?
A. The governing body
B. The independent auditor
C. Management - Correct answer-C. Management
Those entrusted with the management of financial resources are primarily
responsible for reporting on the stewardship of the resources committed to their
care.
Which of the following best describes the relationship between accounting and
financial reporting?
A. The two terms are essentially interchangeable.
B. The two terms are complementary but distinct.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
