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:

Aging Parents

The phase in an individual's and family's life where parents experience the physiological and often psychological changes associated with old age.

Raising Grandchildren

The situation where grandparents are the primary caregivers of their grandchildren, often due to the absence or incapacity of the parents.

African American

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.

Midlife Adults

Individuals typically in the age range of 40 to 65 years, often experiencing significant life transitions related to career, family, and personal identity.