Which of the Following Is NOT a Reason Why Users

question 8

Multiple Choice

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

• A)To determine the ability of the entity to meet its obligations.
• B)To determine the ability of the entity to continue to provide services.
• C)To predict future fiscal solvency.
• D)To evaluate the overall profitability of the entity.

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Definitions:

Profits

The financial gains obtained after subtracting the costs and expenses from the total revenue generated by a business or investment.

Ethic Of Care

A moral theory emphasizing the importance of interpersonal relationships and compassion in ethical decision-making.

Human Relationships

The complex interactions and connections between individuals in various social, professional, or familial settings.

Decision Makers

Individuals or groups within an organization responsible for making choices that affect the company's direction, operations, and policies.