A more conservative measure of the governments liquidity that focuses on

A more conservative measure of the governments

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A more conservative measure of the government’s liquidity that focuses on unrestricted cash and cash equivalentsUnrestricted cash & cash equivalentsCurrent liabilitiesFINANCIAL PERFORMANCEChange in net positionA measure of the change in the overall financial condition of the government that includes governmentaland business-type activities but not fiduciary activities ordiscretely presented component unitsTotal ending net position(governmental & BTA) – total beginning net positionInterperiod equityA measure of whether the government has lived within its means for the yearNet revenues (gross rev +/- internaltransfers, special & extraordinaryitemsTotal expensesSales tax growthA measure of the state of the local economy by comparing current revenue collected to the prior yearChange in sales & use tax revenue(current – prior year)Prior year sales & use tax revenueBTA self sufficiencyA measure of the extent to which the government’s BTA are funded with current-year service charge revenues, rather than prior year resources or subsides from other fundsBTA service charge revenuesBTA total expensesFINANCIAL CAPABILITYRevenue dispersionA measure of the exposure to the potential financial difficulties resulting from reliance on revenue sources beyond the direct control of the governmentNon-tax revenue sourcesTotal revenue (excluding special orextraordinary items)Bonded debt per capitaA measure of the government’s bonded debt burden on its taxpayersGeneral bonded debtPopulation Available legal debt limitA measure of the government’s capacity to issue generalbonded debtGeneral bonded debtLegal debt limitProperty taxes per capitaA measure of the government’s property tax burden on its taxpayersProperty tax levyPopulationSales tax rateA measure of the governments capacity to raise additional sales tax if needed% sales tax rateQUIZ 101.After financial ratios are calculated, the results should be compared to any of the following except:a.Comparable government ratios calculated from the Government Finance Officers Association’s Financial Indicators Database.b.Budgeted information for the government for the upcoming year.
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c.The same indicator from prior years.d.Credit analyst measures or other red flag indicators.2.An effective system of monitoring financial condition may permit management to identify unfavorable financial trends in sufficient time to take preventive action to avoid financial distress.a.Trueb.False
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