Question

Match the items below by entering the appropriate code letter.

A.		Internal users
B.		Proprietorship
C.		Expenses
D.		Investing activities
E.		Financing activities
F.		Assets
G.		Liabilities
H.		Private corporation
I.		Dividends
J.		Public corporation

1.		Consumed assets or services.
2.		Ownership is limited to one person.
3.		Officers and others who manage the business.
4.		Creditor claims against the assets of the company.
5.		A separate legal entity under provincial or federal laws that is listed on a Canadian, or other, stock exchange, and is required to distribute their financial statements to the general public.
6.		Provides future economic benefits to the company
7.		An activity that involves acquiring the resources necessary to run the business.
8.		An activity in which companies borrow money and sell shares.
9.		Payments to shareholders.
10.		A separate legal entity under provincial or federal laws where the shares are often said to be "closely held".

Which of the following statements is not true?

Public corporations must use international financial reporting standards.

Private corporations can choose to use either international financial reporting standards (IFRS) or accounting standards for private enterprises (ASPE).

Both public and private corporations issue shares.

All private corporations are small.

Answer 1

1	Consumed assets or services.	C. Expenses
2	Ownership is limited to one person.	B. Proprietorship
3	Officers and others who manage the business.	A. Internal users
4	Creditor claims against the assets of the company.	G. Liabilities
5	A separate legal entity under provincial or federal laws that is listed on a Canadian, or other, stock exchange, and is required to distribute their financial statements to the general public.	J. Public coporation
6	Provides future economic benefits to the company	F. Assets
7	An activity that involves acquiring the resources necessary to run the business.	D. Investing activities
8	An activity in which companies borrow money and sell shares.	E. Financing activities
9	Payments to shareholders.	I. Dividends
10	A separate legal entity under provincial or federal laws where the shares are often said to be "closely held".	H. Private corporation

Answer: All private corporations are small.

All private corporations may not be small and hence the above statement is not true.

Public corporations are required to use the international financial reporting standards (IFRS) while the private corporations may choose to use the IFRS or the accounting standards for private enterprises (ASPE). Also both public and private corporations issue shares. Hence, all the other three statements are true.