Q3. All of the following are sources of pressure that change or influence the development of accounting principles and standards except:

a. Industry associations

b. Individual companies

c. Securities commissions

d. Canada Revenue Agency

Q4. All of the following are other than primary sources of GAAP in Canada except:

a. accounting literature and accepted industry practices.

b. the CPA Handbook.

c. guidance given on specific topics in textbooks, journals and articles.

d. pronouncements of other standard setting bodies.

Q5. Major challenges facing the accounting profession include all of the following except:

a. Timeliness - how to report reliable real-time information.

b. Globalization of companies and capital markets.

c. How to manage the CPA organization.

d. credibility - how to regain public confidence.

Q6. Some foreign countries have reporting standards that are different from standards in Canada for all of the following reasons except:

a. the influence of financial institutions.

b. the objectives of financial reporting often differ among countries.

c. the institutional structures are often not comparable.

d. strong nationalist tendencies may be pervasive and therefore there is reluctance to adopt any one country's approach.

Q7. A company can choose to follow International Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (ASPE).

True

False

Q8. Under ASPE, the primary source of GAAP is the CPA Canada Handbook, Part II.

True

False

Q9. The main objective of the financial statements is to provide information to investors and creditors.

True

False

Q10. The board of directors is an internal user of financial statement information.

True

False

Q11. IFRS stands for International Accounting Recording Standards.

True

False

Q12. The term "generally accepted" means either that an authoritative rule-making body in accounting has created a reporting principle in a particular area or that, over time, a specific practice has been accepted as appropriate because it is used universally.

True

False

Q14. The concept of ethics refers to the standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair.

True

False