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

question 21

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 a legal, financial document.
• B)Revenues are usually indicative of demand for goods or services.
• C)There is direct matching of revenues and expenses.
• D)There are no defined ownership interests.

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Definitions:

Budgeted Net Income

The estimated amount of money expected to be earned over a specific period after all expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not vary with the volume of output, including costs like rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating its profitability.