Using a Simplified Version of Canadian GAAP for Small Companies

question 56

True/False

Using a simplified version of Canadian GAAP for small companies in order to reduce the cost of providing financial information is an example of the application of materiality.

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Definitions:

Without Recourse

A term indicating that the holder of a financial instrument cannot demand payment from the originator if the primary obligor defaults.

Holder In Due Course

A legal term for someone who has acquired a negotiable instrument in good faith for value and without notice of any defect.

Negligent

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, resulting in harm or damage.

Dishonored Checks

Checks that a bank refuses to pay or cash, typically because the account holder has insufficient funds.