Users of governmental and nonprofit financial reports use financial statements to answer a number of questions. Which of the following can at least partially be answered by reading a government or nonprofit's financial statements? a. Does the entity have sufficient financial resources to provide a reasonable cushion against near-term revenue shortfalls caused by economic contraction? b. What is the likelihood of the entity's ability to pay its short-term and long-term financial obligations? c. What is the entity's ability to continue to provide a particular level of services? d. Financial statements can be used to answer all of the aforementioned questions. e. None of the above. Which of the following type of entities commonly uses fund accounting for internal reporting purposes? a. State and local governments. b. Business enterprises. c. Nonprofit entities. d. Both a and b. e. Both a and c. Which of the following type of entities prepares financial statements using both the modified accrual basis of accounting and the accrual basis of accounting? a. State and local governments. b. Business enterprises. c. Nonprofit entities. d. Federal government. Which of the following type of entities prepares both entity wide and fund financial statements? a. State and local governments. b. Business enterprises. c. Nonprofit entities. d. Federal government.