Which of the following statements best describes the reporting process for profit seeking and governmental entities?

Multiple Choice

Both profit$-$seeking enterprises and governmental entities use the accrual or cash basis of accounting to record and report transactions.

In profit$-$seeking enterprises the measurement focus is on the flow of current financial resources, whereas the focus for government funds is on all economic resources.

Both profit$-$seeking enterprises and governmental entities have an objective to measure profitability.

In profit$-$seeking enterprises the measurement focus is on the flow of all economic resources of the firm, whereas the focus for governmental funds is on current financial resources.