Which of the Following Accurately Describes the Standard Setting Process

question 43

Multiple Choice

Which of the following accurately describes the standard setting process in Canada?

• A)The Accounting Standards Oversight Council approves the IFRS.
• B)The Accounting Standards Board has no authority to alter IFRS.
• C)The IFRS are jointly set by the Accounting Standards Board and the IASB.
• D)The Public Sector Accounting Board oversees standards for private enterprises.

---

Definitions:

Limited Liability

The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.

Proprietorship

An unincorporated business firm owned by just one person.

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and having the ability to enter into contracts, loan and borrow money, sue and be sued.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers, such as banks, investment funds, and insurance companies.