The Objectives of Financial Reporting for Nonbusiness Enterprises

question 14

Multiple Choice

The objectives of financial reporting for nonbusiness enterprises:

• A)are exactly the same as those for business enterprises.
• B)focus on providing information for resource providers, rather than investors.
• C)have more of an internal utilization rather than external reporting focus.
• D)do not give consideration to the cost of providing information.

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Definitions:

Temporary Workers

Individuals employed for a limited period to fulfill short-term business needs, often without the expectation of long-term employment.

Labor Shortage

A situation where the demand for workers exceeds the supply within a particular industry or overall economy.

Revocability

The characteristic of being able to cancel, withdraw, or annul something previously granted or decided.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house.