Governments and nonprofit entities are similar in many ways. Which of the following statements is not true? a. Neither governments nor nonprofit entities have a profit motive. b. Both governments and nonprofit entities provide services. c. Both governments and nonprofit entities assess taxes. d. Both governments and nonprofit entities often report restricted LO 1 Homework icons indicate which assignments are available in myBusinessCourse (MBC). This feat is only available when the instructor incorporates MBC in the course. resources. Why do governments and nonprofit entities use fund accounting? a. To help ensure restricted resources are spent for their intended purpose. b. To help limit errors when posting general journal entries to the general ledger. c. To allow managers more flexibility when budgeting. d. To better match revenues and expenses. Which of the following is generally the major source of revenues for governments? a. Voluntary donations. b. Revenue from exchange transactions. c. Taxes. d. Revenue from investments. LO 2 LOS link assignments to the Learning Objectives of each chapter. Successful entities prepare budgets. Which of the following entities is generally required by law to prepare a budget? a. Commercial business enterprises. b. Governments. c. Nonprofit entities. d. All of the above are required by law to prepare a budget. LO 1 LO 1