Which of the Following Characteristics Is NOT a Characteristic That

question 6

Multiple Choice

Which of the following characteristics is NOT a characteristic that may distinguish a governmental or not-for-profit entity from a business entity?

• A)There is often no direct link between revenues generated and expenditures/expenses incurred.
• B)Capital assets may neither produce revenues nor save costs.
• C)Revenues may not be indicative of demand for goods and services.
• D)The mission of the entity will determine the goods or services provided.

Understand and apply the principles of preparing a balance sheet.

Calculate and analyze key financial metrics including ending retained earnings, income from operations, and gross profit.

Journalize adjusting entries for inventory and expected customer returns and allowances.

Analyze and record transactions affecting the accounting equation.

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Definitions:

Cognitive Moral Development

The process by which individuals evolve in their understanding and application of ethical principles as they grow and gain experience.

Internal Rewards

Psychological benefits, such as satisfaction or joy, that individuals receive from performing well or achieving a personal goal, independent of external recognition.

External Rewards

Incentives or benefits provided by an external source, such as money or praise, to motivate behavior.