The CICA Handbook -- Accounting Is the Handbook of Canadian

question 29

Multiple Choice

The CICA Handbook -- Accounting is the handbook of Canadian accounting standards. Why do companies in Canada ensure that their financial reporting is consistent with Canadian GAAP?

• A) Their bank requires them to do so.
• B) Their auditors require them to do so.
• C) Reporting under the CICA Handbook -- Accounting is required by public companies' boards of directors.
• D) Compliance with the CICA Handbook -- Accounting pronouncements is usually required by incorporation statutes and stock exchanges.

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Definitions:

Automotive

Refers to the design, development, manufacturing, marketing, and selling of motor vehicles.

Railroads

Land transport routes using a series of tracks and stations for the movement of trains to transport passengers and goods.

Industrial Regulation

Governmental regulation of industries to ensure competition, control prices, prevent monopolies, and protect consumers.

Social Regulation

A form of government intervention in the private sector that aims to protect public welfare, health, safety, and the environment.