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Public accountability and legal compliance are central features of the governmental environment and are emphasized across CGFM objectives for Exam 1. Unlike the private sector—where profit maximization and investor return dominate—public sector entities operate under the rule of law and budgetary authority granted by elected bodies. When a legislature earmarks fuel taxes for highway maintenance, it is creating a legally binding authorization and restriction on spending. The executive branch must administer that program in accordance with those legal provisions and any related appropriations, allotments, and budget controls. This reflects the accountability relationship between the government and taxpayers: resources raised for a dedicated purpose must be used for that purpose, and managers are accountable for compliance, stewardship, and transparent reporting. Interperiod equity (Option A) focuses on whether current-year revenues cover current-year services, which is related but not the most direct principle here. Cost-benefit optimization (Option C) is an important management concept but does not supersede statutory constraints. The economic entity assumption (Option D) is a general accounting notion about defining the reporting unit and is not the primary driver of the scenario. Therefore, Option B best captures the core governmental principle at play.