7. Burton Ltd. operates in both Canada and the United States. The company wants to improve the qualitative characteristics of its financial statements. Which of the following would most likely improve the comparability of Burton's financial statements? a) the restatement of its financial statements from Canadian GAAP to US GAAP for its American investors b) the preparation of monthly financial statements c) the introduction of a policy that specifies how Sunbury's capital assets should be depreciated d) the use of U.S.-trained accountants e) none of the above 8. Gains are defined as a) increases in economic resources resulting from an entity's ordinary activities. b) decreases in economic resources resulting from an entity's ordinary activities. c) the residual interest remaining after liabilities are deducted from assets. d) increases in equity resulting from an entity's peripheral or incidental transactions. e) none of the above. 9. Financial statements prepared under ASPE include a a) statement of comprehensive income. b) statement of cash flows and a statement of changes in shareholders' equity. c) balance sheet and a statement of retained earnings. d) statement of retained earnings and a statement of comprehensive income. e) none of the above 10. The practice of matching a) dictates that efforts (expenditures) be matched with associated cash flow. b) requires arbitrary allocation of an asset's contribution to a revenue stream. c) illustrates the cause and effect relationship between costs incurred to earn revenues and the revenues themselves. d) is required by GAAP to approximate an asset's contribution to an entity's periodic cash flow. e) none of the above. Questions 11 to 15 are each worth two marks. 11. Which of the following is correct regarding income statement presentation? a) Income from continuing operations is the last line shown on the income statement b) IFRS does not allow the use of a single step income statement. c) Unusual gains or losses must be presented in a separate section after income from continuing operations. d) IFRS requires that both basic and diluted earnings per share be presented, whereas ASPE does not e) None of the above