The reason for the importance of evaluating government performance can vary across stakeholders; however, having open and transparent financial information that allows for evaluation is critical regardless of the reason for evaluation. For creditors, evaluation of financial performance is necessary to ascertain whether the government is be able to meet debt obligations as they come due. Evaluation is also important when a creditor is considering extending credit to a government entity since it can help the creditor determine whether the government is an acceptable credit risk (will have the capacity to repay future debt and meet interest payment obligations). Citizens, as taxpayers and users of government services should evaluate government financial performance to ensure tax dollars are being spent appropriately and efficiently to provide the services needed.

True or False?