Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The option identifying shareholders as not a primary user of financial reports in government is correct because shareholders are typically associated with private sector companies, where they seek information to assess the performance and value of their investments. In contrast, government financial reports are primarily designed to meet the needs of stakeholders involved in public resource management and accountability, such as citizens and taxpayers, legislators, and oversight groups.

Citizens and taxpayers rely on financial reports to understand how their tax dollars are spent, ensuring transparency and accountability in government operations. Legislators and oversight groups utilize these reports to inform policy decisions, evaluate financial health, and monitor compliance with laws and regulations. The media may also be involved as they disseminate information about government finances to the public; however, their interest is often secondary to the needs of the primary users. In summary, while shareholders focus on profitability and investment returns in the private sector, government financial reports serve a distinct purpose related to public accountability and resource management.