Which of the Following Statements Is Not True

question 14

Multiple Choice

Which of the following statements is not true?

• A) Public corporations must use International Financial Reporting Standards.
• B) Private corporations can choose to use either International Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (ASPE).
• C) Both public and private corporations issue shares.
• D) All private corporations are small.

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Definitions:

Retained Earnings

Profits that a company has decided to keep and reinvest in the business, rather than distribute to shareholders as dividends.

Contra-stockholders' Equity

An account that reduces the total amount of stockholders' equity, such as treasury stock or accumulated deficits.

Treasury Stock

Shares that were once a part of the float and sold but have since been repurchased by the issuing company and held in its treasury.

Voting Rights

The entitlement of shareholders or members of an organization to vote on important matters, such as the election of the board of directors.