A Difference in the Financial Reporting Objectives for Governmental Entities

question 13

True/False

A difference in the financial reporting objectives for governmental entities and not-for-profit entities is that governmental entities report on compliance with laws,regulations,and rules that impact financial reports.

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Definitions:

Reciprocity Principle

A social norm suggesting that people are likely to respond to actions with similar actions, contributing to cooperation and social exchange.

Compliance

Superficial, public and transitory change in behaviour and expressed attitudes in response to requests, coercion or group pressure.

Social Responsibility Norm

The idea that we should help people who are dependent and in need. It is contradicted by another norm that discourages interfering in other people’s lives.

Individualistic Societies

Societies that prioritize the needs and rights of the individual over those of the group or community.