worth one H The majority of business in Canada is conducted by corporations 2 The three main business activities are financing, operating, and investing 3 A publicly traded company's annual report generally includes audited financial statements (with auditor's True False True False report), notes to the financial statements, and management's discussion and analysis. True False 4. If a company hires honest employees and its top management acts with integrity, no internal control procedures will be necessary. True False 5. Both the statement of financial position and the statement of earnings will be impacted by each adjusting entry True False 6. There are two main types of adjusting entries those relating to prepayments those relating to prepayments and those relating to accruals True False 7. If a publicly traded company in Canada has an internal audit function, it does NOT need to have external auditors. True False 8. Most companies use the accrual basis of accounting because it is required under accounting principles. generally accepted True False 9. A company's internal control system must be designed and maintained by its external auditors. True False 10.Closing entries are necessary to transfer balances of temporary accounts to retained earnings True False