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ExamName___________________________________TRUE/FALSE.Write 'T' if the statement is true and 'F' if the statement is false.1)The main purpose of financial accounting is to communicate useful financialinformation to decision-makers both inside and outside of the business organization.1)2)The Canadian Business Corporations Act mandates that all incorporated companies inCanada follow IFRS.2)3)Private companies in Canada may choose between IFRS or ASPE.3)4)Canada has adapted its own pre-existing standards for public companies to IFRS, whilethe U.S has adopted IFRS completely.4)5)A disclosed basis of accounting is acceptable if a company's financial statements areprepared solely for internal use.5)6)Only publicly traded companies in Canada are required to adopt IFRS.6)7)Earnings quality is said to be high when most of a company's earnings are the result ofits continuing operations.7)8)Income tax deferral is illegal in Canada.8)9)In Canada, income for tax and accounting purposes may be different.9)10)External users of a company's financial statements may have conflicting objectives.10)11)In Canada, IFRS standards were essentially converged with Canadian GAAP.11)12)A company's functional currency is always the currency in which the financialstatements are presented.12)13)It is acceptable for publicly traded Canadian companies to report under US GAAP.13)14)In Canada, almost all equity financing for both public and private companies is donethrough private placements.14)15)IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).15)1
16)Privately held, publicly accountable companies with a fiduciary responsibility mustcomply with IFRS.16)17)Mutual fund companies, which may be privately held, are deemed to have a fiduciaryresponsibility and must therefore comply with IFRS.17)18)Canadian companies must always present their financial results in Canadian dollars.18)19)Canadian corporations are prohibited from using U.S. GAAP.19)20)A company's functional currency is the currency in which it conducts most of itsbusiness.20)21)The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accountingpolicies by private companies.21)22)A wholly-owned subsidiary of a multinational corporation is essentially a privatecorporation.22)23)The accounting standards for private enterprises (ASPE) are essentially a scaled-downversion of the CPA Handbook, which is available to all small and medium sizedenterprises with no fiduciary responsibility.23)

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Term
Fall
Professor
Bb
Tags
Income Statement, Generally Accepted Accounting Principles, International Financial Reporting Standards, Accounting standards Board, Federal Accounting Standards Board

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