A difference in the financial reporting objectives for governmental entities and not-for-profit entities is that governmental entities report on compliance with laws,regulations,and rules that impact financial reports.

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This statement is true. Governmental entities are required to report on their compliance with various laws, regulations, and rules that impact their financial reports, such as Generally Accepted Accounting Principles (GAAP), internal control procedures, and legal restrictions on how public funds can be used. Not-for-profit entities, on the other hand, are typically focused on reporting on their activities and accomplishments related to their charitable or social missions, rather than compliance with specific regulations.

A Difference in the Financial Reporting Objectives for Governmental Entities