Question

FASAB has identified four major user groups of federal financial reports, they are:

A. Congress, executives, program managers, and citizens.
B. Congress, executives, citizens, and bond rating agencies.
C. Congress, program managers, foreign governments and citizens.
D. Congress, program managers, bond rating agencies, and political parties.

Answer 1

The FASAB identifies Congress, executives, program managers, and citizens as the four major user groups of federal financial reports, reflecting the diverse stakeholders in federal financial transparency and accountability.

Step-by-step explanation:

The Federal Accounting Standards Advisory Board (FASAB) has identified four major user groups of federal financial reports. These groups are: A. Congress, executives, program managers, and citizens. The identification of these groups underscores the broad scope of stakeholders who rely on transparent and accountable financial reporting from federal entities.

Congress uses these reports for oversight and policy-making, analyzing how funds are allocated and ensuring they serve public interests effectively. Executives within the federal government require this information for decision-making and managing government operations. Program managers utilize the reports to assess and improve program performance, make budgeting decisions, and demonstrate accountability. Finally, citizens and other stakeholders examine the reports to understand government spending and to evaluate the government's performance and use of taxpayer dollars.