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Major attributes of a government include all of the following except:

A. A government must adhere to a legal budget.
B. Use of certain financial inflows is restricted by external organizations.
C. Governments do not have equity owners.
D. Matching of revenues to the costs of providing services is a key reporting concept.

2 Answers

3 votes

Final answer:

The question pertains to the fiscal management and organizational structure of a government. 'Matching of revenues to costs' is not a traditional government attribute; governments adhere to budgets, lack equity owners, and face externally restricted financial inflows.

Step-by-step explanation:

The major attributes of a government mentioned in the question pertain to fiscal management and organizational structure. Specifically, the statement that 'Matching of revenues to the costs of providing services is a key reporting concept' is not traditionally listed as a major attribute of government, as this principle is more closely related to accrual accounting used by businesses rather than the cash basis of accounting that governments typically employ. Governments, such as federal, state, and local entities, have budgets to manage how much revenue they expect to receive through taxes and other income sources, and how these funds will be allocated for spending to support various services and programs. It is critical to note that governments are distinct from businesses in that they do not have equity owners (C), they are subject to legal budget controls (A), and they may have use of funds restricted by external organizations (B). These aspects underscore the unique financial and structural characteristics of governments as compared to private sector businesses.

User Ilya Lysenko
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5 votes

Answer:

A. A government must adhere to a legal budget.

Step-by-step explanation:

Government officials are encouraged to follow the budget that they've created, but they're not necessarily required to adhere it.

Government budget only serve as some sort of ceiling which dictate how much fund available for the government to purchase all of the things necessary to run its programs.

But sometimes, government has to face a situation that force the officials to spend more than the legal budget (Corona virus outbreak is a good example for this). This is allowed as long as it's being done in a proper planning.

User Egrunin
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5.6k points