If the Long-Term Outlook Is Good, but the Short-Term Outlook

question 50

Multiple Choice

If the long-term outlook is good, but the short-term outlook is poor, the operation should:

• A) Lay off staff
• B) Adopt short time/idle time
• C) Hire and make for inventory, start to recruit
• D) Hire staff
• E) Make for inventory/adopt short time F) Overtime/hire temporary workers

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Definitions:

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards and procedures used to compile financial statements in Canada.

Operating Segments

Components of a business from which separate financial information is available and is evaluated regularly by the company’s decision makers.

US GAAP

United States Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for privately held companies in Canada.