Accounting Standards

Question 1

Cost Principle

Answer 1

assets in balance sheet are listed according to the aquisition cost or construction cost

“actual cost to the buisness”
OR
“original cost”

Question 2

Buisness Entity Principle

Answer 2

different buisnesses are considered sepearate buisness and therefore have separate financial data from owner’s personal fiancial data

Question 3

Fair Value Principle

Answer 3

assets in finacial reports are listed according to the fair market value

Question 4

IFRS

Answer 4

International Financial Reporting Standards

Question 5

ASPE

Answer 5

Accounting Standards for Private Enterprises

Question 6

What type of companies use IFRS?

Answer 6

public buisnesses
non-profit (optional)
private buisnesses (optional)

Question 7

What type of companies use ASPE?

Answer 7

non-profit (optional)
private buisnesses (optional)

Question 8

GAAP

Answer 8

Generally Accepted Accounting Principles
* used accounting standards in Canada until 2011

Question 9

Public Buisness

Answer 9

a buisness listed on stock exchange and is accountable to the public

Question 10

Private Buisness

Answer 10

• a buisness with no shares traded in the stock market
• not accountable to the public
• may be owned by a person/small group of people

Question 11

AcSB

Answer 11

Canadian Accounting Standards Board

Question 12

IASB

Answer 12

International Accounting Standards Board

Question 13

Controls which encourage people to do the right thing in business and accounting

Answer 13

• Business Ethics
• Law
• Professional Stadards
• Accounting Standards and Principles

Question 14

Buisness Ethics

Answer 14

the study of ethical dilemmas, values, and decision making in the world of buisness

Question 15

the two reporting standards…

Answer 15

IFRS
ASPE