Which of the Following Statements Best Describes the Reporting Process

question 10

Multiple Choice

Which of the following statements best describes the reporting process for profit seeking and governmental entities?

• A) In profit-seeking enterprises the measurement focus is on the flow of all economic resources of the firm, whereas the focus for governmental funds is on current financial resources
• B) In profit-seeking enterprises the measurement focus is on the flow of current financial resources, whereas the focus for government funds is on all economic resources.
• C) Both Profit-seeking enterprises and governmental entities have an objective to measure profitability.
• D) Both Profit-seeking enterprises and governmental entities use the accrual or cash basis of accounting to record and report transactions.

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Definitions:

Structuration Theory

A concept in social science that outlines how societal structures are both constituted by human agency and yet at the same time are the very medium of this constitution.

Time and Space

Fundamental concepts in sociology and geography, referring to the societal organization of time and the use and perception of space.

Micro Social Phenomena

Social processes and interactions that occur on a small scale, often involving individual or small group dynamics.

Macro Social Phenomena

Large-scale social events and processes that affect societies and institutions.