Certified Government Financial Manager (CGFM) Practice Exam

The choice regarding future financial goals is typically not included in financial statements. Financial statements focus on presenting historical data that reflects the financial performance, financial position, and cash flows of an organization at a specific point in time. This includes results of operations, which reflect revenues, expenses, and profits or losses for a given period, as well as financial condition, which provides insights into assets, liabilities, and equity.

Additionally, the planning and administration aspects relate to the management and operational strategies behind the numbers, but these details are also not part of the financial statements. Instead, they may be discussed in a broader context within reports or presentations to stakeholders. Financial statements are governed by accounting principles and standards, and their primary function is to present past performance rather than future expectations or goals. This distinction is crucial for understanding the nature of financial reporting and the purpose of different financial documentation.