The CPA Canada Handbook - Accounting Is the Handbook of Canadian

question 14

Multiple Choice

The CPA Canada 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 CPA Canada Handbook - Accounting is required by public companies' boards of directors.
• D) Compliance with the CPA Canada Handbook - Accounting pronouncements is usually required by many legal statutes.

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Definitions:

FICA Tax

A U.S. federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, disabled people, and children of deceased workers.

Federal Income Tax

A tax levied by the government on the annual income of individuals, corporations, trusts, and other legal entities.

Net Pay

The amount of an employee's earnings after all deductions, including taxes and retirement contributions, have been subtracted.

FICA Tax

A United States federal payroll tax that funds Social Security and Medicare, deducted from employees’ paychecks and matched by employers.