In Canada, We Have Business and Non-Business Organizations

question 32

Essay

In Canada, we have business and non-business organizations.
Required:
Explain the difference between these two types of organizations. Why should they be allowed to follow different accounting policies?

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Definitions:

Norm Of Reciprocity

A social norm that expects individuals to respond to each other with equivalent actions, such as returning favors or responding to hostility in kind.

Foot-In-The-Door Study

Psychological experiments demonstrating that agreeing to a small request increases the likelihood of agreeing to a larger request later on.

Compliance

The act of conforming to or following the rules, requests, or orders of others, often to gain approval or avoid conflict.

Scarcity

The economic principle that describes the limited availability of resources compared to the theoretically limitless wants and needs of individuals.