B is corrent. GASB 34 requires use of full accrual accounting so that users are better able to access the financial health of the government. The question that needs to be answered is "did the government’s financial health improve or not from the previous year?" The use of full accrual accounting also permits taxpayers to assess the cost of the government’s operations; that is, are the costs of services provided by the government being paid for in full with tax and other revenues that were levied and collected during the current year, or do the costs exceed the revenues, causing a financial burden on taxpayers in future years?
A is incorrect. Information should be provided to allow users to assess I and II.
A is incorrect. Information should be provided to allow users to assess I and II.
D is incorrect. Information should be provided to allow users to assess I and II.
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