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.