(1). The note disclosure presented below is an example of what kind of disclosure? Compensation of key management personnel and directors of the Company For the year ended December 31 2020 2019 $ Salaries and other short-term employment benefits 11 11 Directors' fees 0.8 0.8 Share-based compensation 8.1 8.3 Total compensation 19.9 20.1 Stantec Inc. (2021). STN 2020 Annual Report. https://www.stantec.com/content/dam/stantec/files/investor relations/2020/q4-year-end/STN%202020%2 QAnnual%20Report.pdf A. Non-GAAP measure B. Full disclosure prinicple C. Segmented reporting D. Related-party transaction #1 Answer: 2). Which of the following statements is true regarding related party transactions? A. Related party transactions can be ignored for financial reporting. B. Related party transactions are to be recorded at fair value. C. Related parties do not include members of the immediate family of company management. D. Transactions between related parties are usually presumed to take place at arms length. #2 Answer: (2). Which of the following statements is true regarding related party transactions? A. Related party transactions can be ignored for financial reporting. B. Related party transactions are to be recorded at fair value. C. Related parties do not include members of the immediate family of company management D. Transactions between related parties are usually presumed to take place at arms length. #2 Answer: 13). Ty Construx Co.'s year end is December 31, 2020. The company issued its financial statements on March 31, 2021. On January 22, 2021, one of its warehouses was significantly damaged by a fire. Ty Construx has fies nsurance coverage. How should Ty account for the fire in its 2020 financial statements? A. Adjust the 2020 figures to account for the loss incurred from the fire. B. Neither adjust or disclose as the fire is considered to be general knowledge. C. Disclose the event in its notes to the 2020 financial statements. D. Issue a press release indicating the damages experienced in the fire. #3 Answer: (5). What is the difference between the direct method used for the Statement of Cash Flows and the Indirect method? A. The operating activities section differs only. B. The investing activities section differs only. C. The financing activities section differs only. D. All three sections of the Statement of Cash Flows are different. #5 Answer: (7). Considering the results of a statement of cash flows, which of the following statements identifies a financially strong company? A. One where there is a cash outflow from operating activities. B. One were there is a large cash inflow from debt financing to provide cash. C. One where cash flow from operating activities exceeds that from investing activities and financing activities. D. One were significant valued long-term assets are sold to provide cash. #7
