31. In a public corporation, which of the following stakeholders would have easy access to other financial information about the entity?
A. Shareholders
B. Managers
C. Employees
D. Auditors
32. You are considering buying a house and have found one that meets all of your criteria. When you are trying to decide how much to pay for it, which of the following parties involved in the process would give you the most reliable information?
A. An independent real estate appraiser.
B. The owner of the house you want to buy.
C. The real estate agent hired by the owner to sell the house.
D. The bank that is providing the mortgage loan.
33. Which of the following best describes the purpose of an accounting system?
A. To accumulate data.
B. To determine the amount of taxes owing.
C. To determine the market value of an entity.
D. To organize, process and convert data into useful information.
34. Which of the following best describes the "critical approach" to accounting?
A. It is a valuable tool for evaluating excessive management compensation.
B. It is a system that includes various levels of authorization to enhance separation of duties.
C. It refers to the application of high-level mental skills in analyzing, evaluating and interpreting financial information for decision-making.
D. A company's auditors may apply the critical approach in their audit procedures.
35. The critical approach to accounting is necessary primarily because:
A. various levels of authorization are desirable to enhance separation of duties.
B. management compensation would be even more excessive without it.
C. revenue Canada requires it.
D. a company's stakeholders and management have differing information needs and interests.
36. What does ASPE stands for?
A. Acceptable Standards for Private Enterprises
B. Accounting for Shareholders of Private Entities
C. Accountants and Shareholders for Private Enterprises
D. Accounting Standards for Private Enterprises
37. What does IFRS stands for?
A. International Fraud Reporting Standards
B. Integrated Financial Reporting Standards
C. International Forensic Reporting Standards
D. International Financial Reporting Standards
38. Which of the following statements about IFRS is true?
A. IFRS is an international set of accounting policies.
B. All entities in Canada prepare their financial statements in accordance with IFRS.
C. Statements prepared according to IFRS are not easily compared.
D. The flexibility of IFRS requires users to apply critical thinking when using financial statements.
39. International Financial Reporting Standards are:
A. mandatory for public companies only.
B. mandatory for both public and private companies.
C. not mandatory, but recommended for both public and private companies.
D. not mandatory, but recommended for public companies only.
40. Which of the following is one of the benefits of the flexibility allowed by IFRS?
A. It allows information to be presented in an appropriate way for the situation.
B. It makes accounting reports more interesting to read.
C. It allows all organizations to be required to follow IFRS.
D. It allows preparers to reflect their own personal interests