Sandy's Sandwiches Is a Small Business Owned and Operated by Sandy

question 7

Multiple Choice

Sandy's Sandwiches is a small business owned and operated by Sandy Southerly that is not publicly traded and has never borrowed any money.Which of the following would be a constraint in the preparation of its financial statements?

• A)Canada Business Corporations Act
• B)CICA
• C)IFRS
• D)The Income Tax Act

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Definitions:

Investments-Treasury Bonds

Fixed-income securities issued by a government to finance its expenditures, considered safe investments with a fixed interest rate.

Interest to Creditors

The amount paid to creditors for lending money or extending credit, typically represented as an annual percentage of the principal.

Current Expenses

Short-term expenses that are incurred in the normal operations of a business and are expected to be paid within a fiscal year.

Dividends to Stockholders

Payments made by a corporation to its shareholder members, usually deriving from the company's earnings.