Which of the Following Statements Best Describes the Reporting Process

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.