Abstract

 The purpose of this study is to determine the ratio of liquidity and solvency on the balance sheet of the Temanggung Regional Government. The object of research used is the balance sheet of the Temanggung Regional Government for the period of 2014-2015. The method used is descriptive qualitative method. The results of this study indicate that the Temanggung district government has sufficient assets to pay off its debts and can pay debts quickly and with a high level of liquidity. Hence, it can be concluded that the Temanggung district government has financial adequacy to carry out government operational activities, and able to fulfill all its obligations, both short-term and long-term obligations, as well as the Temanggung district government has the opportunity to attract investors and creditors to channel their funds for the development of the Temanggung government.
Highlights
Regional autonomy requires regional leaders to provide financial accountability reports in the form of Budget Realization Reports, cash flow reports, regional balance sheets, and notes to financial reports (Bastari, 2004)
As in the business world, many parties are interested in the regional balance sheet, including the regional executive and the legislature, the community, and other users, in order to determine the quality of assets owned by the region and how to manage them efficiently and effectively in order to provide better services to society
As a consequence, interested parties must be aware of the local government's financial situation
Summary
Regional autonomy requires regional leaders to provide financial accountability reports in the form of Budget Realization Reports, cash flow reports, regional balance sheets, and notes to financial reports (Bastari, 2004). As in the business world, many parties are interested in the regional balance sheet, including the regional executive and the legislature, the community, and other users, in order to determine the quality of assets owned by the region and how to manage them efficiently and effectively in order to provide better services to society. Based on the background above, the formulation of the problems in this study is: How the regional government of Temanggung regency's financial performance when examined from the balance sheet side with an analysis of liquidity and solvency ratios. The study aims to provide empirical evidence regarding the financial performance of the local government's balance sheet in Temanggung district. All reports and varied explanations that accept the report will be recognized as part of the financial report are referred to as "Local Government Financial Report." (Mardiasmo, 2004)
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