Which accounting standard outlines the scope of general-purpose external financial reporting?

The correct choice identifies the concept that defines the framework for general-purpose external financial reporting. Concepts Statement No. 2 specifically outlines the objectives and the general purpose of financial reporting, focusing on what information is useful for decision-making by various stakeholders including citizens, legislators, and oversight bodies in the context of government entities. Its intent is to enhance the financial condition understanding and accountability of governmental organizations, which is essential to ensure transparency and public trust.

The other options refer to particular standards or guidelines that do not define the overarching scope of general-purpose financial reporting as thoroughly as Concepts Statement No. 2. For example, GASB Statement No. 34 establishes specific requirements for financial reporting in governmental entities but does not encapsulate the broader purpose behind why such reports are generated. Similarly, Governmental Accounting Standards provide accounting guidance but do not explicitly set a foundational scope for reporting. Private Sector Accounting Standards would be more relevant to non-government entities and are not applicable in the governmental context being considered here.