11The main purpose of financial accounting
1
1.
The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization. True False 2.
The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS. True False 3.
Private companies in Canada may choose between IFRS or ASPE. True False 4.
Canada has adapted its own pre-existing standards for public companies to IFRS, while the U.S has adopted IFRS completely. True False 5.
External users of a company's financial statements may have conflicting objectives. True False 6.
A company's functional currency is always the currency in which the financial statements are presented. True False 7.
In Canada, almost all equity financing for both public and private companies is done through private placements. True False 8.
IFRS standards may be modified to allow for a disclosed basis of accounting (DBA). True False 9.
Privately held, publicly accountable companies with a fiduciary responsibility must comply with IFRS. True False 10.
Mutual fund companies, which may be privately held, are deemed to have a fiduciary responsibility and must therefore comply with IFRS. True False 11.
Canadian companies must always present their financial results in Canadian dollars. True False 12.
In North America, the principal stakeholder to whom general-purpose financial statements are geared is the shareholder. True False 13.
Canadian corporations are prohibited from using U.S. GAAP. True False 14.
A company's functional currency is the currency in which it conducts most of its business. True False 15.
The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies. True False 16.
A wholly-owned subsidiary of a multinational corporation is essentially a private corporation. True False 17.
The
1.
The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization. True False 2.
The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS. True False 3.
Private companies in Canada may choose between IFRS or ASPE. True False 4.
Canada has adapted its own pre-existing standards for public companies to IFRS, while the U.S has adopted IFRS completely. True False 5.
External users of a company's financial statements may have conflicting objectives. True False 6.
A company's functional currency is always the currency in which the financial statements are presented. True False 7.
In Canada, almost all equity financing for both public and private companies is done through private placements. True False 8.
IFRS standards may be modified to allow for a disclosed basis of accounting (DBA). True False 9.
Privately held, publicly accountable companies with a fiduciary responsibility must comply with IFRS. True False 10.
Mutual fund companies, which may be privately held, are deemed to have a fiduciary responsibility and must therefore comply with IFRS. True False 11.
Canadian companies must always present their financial results in Canadian dollars. True False 12.
In North America, the principal stakeholder to whom general-purpose financial statements are geared is the shareholder. True False 13.
Canadian corporations are prohibited from using U.S. GAAP. True False 14.
A company's functional currency is the currency in which it conducts most of its business. True False 15.
The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies. True False 16.
A wholly-owned subsidiary of a multinational corporation is essentially a private corporation. True False 17.
The