Which of the following characteristics distinguishes a governmental or not-for-profit entity from a business entity?
A)There is always a direct link between revenues generated and expenditures/expenses incurred.
B)Capital assets are used to produce revenues and save costs.
C)Revenues are always indicative of demand for goods and services.
D)The mission of the entity will determine the goods or services provided.

Question

Quizplus · Accepted Answer

The mission of a governmental or not-for-profit entity will determine the goods or services provided, whereas a business entity is primarily driven by the need to generate profit. The other options may apply to both types of entities.

Which of the Following Characteristics Distinguishes a Governmental or Not-For-Profit