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 current financial resources, whereas the focus for government funds is on all economic resources.
B. 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.
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.
Answer: B
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Answer the following statement true (T) or false (F)
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