1. The objective of financial reporting is to:(a)provide information to the Canada Revenue Agency.(b)provide financial information that is useful to existing and potential investors, lenders and other creditors.(c)comply with Accounting Standards for Private Enterprises.(d)comply with International Financial Reporting Standards.2. Which statement is correct regarding other comprehensive income (OCI)?(a)Private companies using ASPE must report OCI.(b)OCI is profit from regular operations before income tax.(c)OCI includes certainadjustments made to reflect some assets at their fair value.(d)Public companies reporting under IFRS do not have to report OCI.3. Failure to prepare an adjusting entry at the end of a period to record accrued revenue would cause(a)Net Incometo be overstated.(b)an understatement of assets and an understatement of revenues.(c)an understatement of revenues and an understatement of liabilities.(d)an understatement of revenues and an overstatement of liabilities.

4. two companies report the same cost of goods available for sale but each employs a different inventory cost formula. If the price of goods has increased during the period, then the company using(a)FIFO will report lower ending inventory.(b)Average cost willreport lower ending inventory.(c)FIFO will report higher cost of goods sold.(d)Average cost will report lower cost of goods sold