What is the cornerstone of external financial reporting for governmental units and not-for-profit organizations?

Question

Quizplus · Accepted Answer

Accountability is the cornerstone of external financial reporting for governmental units and not-for-profit organizations, as they are accountable to their stakeholders for the use of public or donated funds. While options A and C may be important components of financial reporting, they are not the primary cornerstone. Option B, determining profit or loss, is not applicable to not-for-profit organizations that do not exist to generate a profit.

What Is the Cornerstone of External Financial Reporting for Governmental