Members of CPA Canada Are Expected to Maintain Higher Standards

question 59

Multiple Choice

Members of CPA Canada are expected to maintain higher standards than society in general:

• A)because they are required to by federal law.
• B)only if they are certifying the financial statements of a company whose stock is listed on a national exchange.
• C)because their ability to attract business depends entirely upon their reputation.
• D)as long as they are working for themselves.

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Definitions:

Capital Balances

The amount of funds contributed by owners or shareholders, plus retained earnings or net income, less any dividends paid out.

Capital Deficiency

A financial situation where a company's liabilities exceed its assets, indicating potential difficulties in covering its debts.

Capital Balances

The amounts in a business's equity accounts that represent the owners' stakes in the company.

Noncash Assets

Assets owned by a business that cannot be easily converted to cash, such as property, plant, and equipment.