Which of the Following Characterizes the Largest Difference Between the Way

question 341

Multiple Choice

Which of the following characterizes the largest difference between the way decisions are made in the private sector versus the public sector?

• A) The incentive system for individuals to perform efficiently are vastly different.
• B) The workers themselves are really quite different types of people.
• C) In both sectors individuals will try to maximize their own individual gains over the gains of others.
• D) Costs and resources are vastly different in each sector.

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Definitions:

GAAP

Generally Accepted Accounting Principles; these are the standard set of accounting rules, standards, and procedures that companies use to compile their financial statements in the United States.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that govern how financial statements should be reported around the world.

Auditing

The examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation.

CPA

Certified Public Accountant, a professional designation given to accounting professionals in numerous countries around the world after completing a study course and passing an examination.