Question

Since neither governments nor not-for-profit entities have investors, the financial reporting objectives are the same for both types of entities.
A. True
B. False

Answer 1

Answer:

False.

Explanation:

As per the question, the given assertion would be considered false as even if the goals of not-for-profit organizations and the governments are similar and that is 'public welfare' and their upliftment. But the financial reporting objectives of both vary from each other as governmental entities report or detail in accordance with the laws and regulations that affect the financial reports while the NPOs do not have as such laws or rules to be followed. Therefore, the assertion is false.