Which of the Following Statements Best Describes the Reporting Process

question 1

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.

---

Definitions:

Theory X

Theory X is a management concept that assumes employees are inherently lazy and will avoid work if they can, suggesting the need for strict supervision and control.

Workers

Individuals engaged in an occupation, profession, or are employed by an organization.

Organization's Needs

The specific requirements or necessities that an organization needs to fulfill its mission and achieve its goals.

Path-Goal

The Path-Goal Theory is a leadership model that outlines how leaders can motivate their followers to achieve set goals by defining clear paths and removing obstacles.