Ace the 2025 Certified Treasury Pro Test – Cash In on Your Future Brilliance!

The Governmental Accounting Standards Board (GASB) serves as the authoritative standard-setting body for state and local governmental entities. GASB establishes accounting and financial reporting standards specifically designed for these governmental organizations, ensuring transparency, accountability, and comparability in financial reporting.

Public works agencies operate within the framework of state and local governments and are therefore subject to the standards set by GASB. This is crucial for proper reporting and management of public funds at the local and state levels, which often involve significant projects related to infrastructure and community services.

In contrast, private universities, healthcare organizations, and publicly traded companies are governed by different accounting standards. Private universities may follow guidelines established by the Financial Accounting Standards Board (FASB), healthcare organizations often comply with specialized standards depending on their structure, and publicly traded companies adhere to SEC regulations and FASB standards. These differences highlight why the correct answer pertains specifically to public works agencies under the jurisdiction of GASB.