24. If a company's bookkeeper forgets to record the journal entry to accrue interest expense, then: O A. net earnings will be understated and liabilities will be overstated. B. net earnings will be overstated and liabilities will be understated. OC. both net earnings and liabilities will be overstated OD. both net earnings and liabilities will be understated. Clear my choice 2:27:39 5 of 24 An advantage to financing the acquisition of assets with debt is that 2 Marks O A interest does not have to be paid until the maturity date. OB dividends are tax deductible. OC. interest is tax deductible. D. dividends reduce retained earnings whereas interest expense does not reduce retained earnings Unsure 6 of 24 Corporations can raise large amounts of money because Exam Support Marks O A all investments in corporate shares earn money for investors. OB. the unlimited liability feature makes corporate ownership attractive to investors. OC. shares in public companies can easily be bought and sold by investors in organized exchange markets OD. corporate earnings are not taxed, Unsure OT 24 2 2:27:34 Which of the following transactions would be reported on the s........... .sh flows as an investing activity? Marks O A The issuance of additional common shares. OB. The purchase of equipment in exchange for a note payable. OC. The repayment of a long-term note payable. OD. The purchase of investments for cash O E The increase in accounts receivable due to sales on account. Unsure 8 of 24 2 Marks Who has primary responsibility for ensuring that the financial statements of a Canadian publicly accountable enterprise follow International Financial Reporting Standards? O A The company's shareholders OB. The company's management OC. The Canadian Accounting Standards Board (AcSB) OD. Independent auditors (CPAs) O E Canadian Securities Administrators (CSA) Unsure 1D