Which of the Following Is Common to Both Governments and Not-For-Profit

question 17

Multiple Choice

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

• A)The budget is generally the most significant financial document.
• B)Revenues are not necessarily indicative of demand for goods or services.
• C)There is frequently no direct link between revenues and expenses.
• D)All of the above are common to both governments and not-for-profit entities but distinguish them from for-profit entities.

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Definitions:

Taxability

The condition of being subject to taxation by governmental authorities.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Productive Economic Resource

Assets or inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.