The Numbers in the Financial Statements Under Accounting Standards for Private

question 17

Multiple Choice

The numbers in the financial statements under Accounting Standards for Private Enterprises (ASPE) _and International Financial Reporting standards (IFRS) _will usually differ,the procedures for analyzing the relationships among the reported numbers:

• A) will also usually differ
• B) remains unchanged
• C) is significantly different
• D) might be different, it depends on the ratio

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Definitions:

Materials Price Variance

A measure of the difference between the actual cost of materials and the expected cost at standard prices.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Standards

Established criteria or benchmarks against which performance, quality, and compliance are measured.