UNIT 1 - PRIORITIZE

Question 1

GAAP stands for

Answer 1

Generally Accepted Accounting Principles

Question 2

GAAP is used by

Answer 2

Canadian and American accountants

Question 3

GAAP was developed by the _____ in Canada and the _____ in the USA

Answer 3

Accounting Standards Board (AcSB) in Canada

Financial Accounting Standards Board (FASB) in USA

Question 4

On Jan 1, 2011, GAAP was replaced by _____, which was developed by

Answer 4

IFRS (International Financial Reporting Standards)

IASB (International Accounting Standards Board)

Question 5

IFRS was adopted in 100 countries, excluding ______

Answer 5

the US

Question 6

2 reasons IFRS replaced GAAP:
- It’s _______ for the world to understand and follow same set of guidelines
- It allows _________ to compare businesses in different countries

Answer 6

simpler
investors

Question 7

ASPE stands for

Answer 7

Accounting Standards for Private Enterprises

Question 8

ASPE is a set of standards typically used by

Answer 8

Canadian private companies (although they can use IFRS)

Question 9

ASPE was developed by _______ and requires less info in financial statements than _______

Answer 9

AcSB
IFRS

Question 10

Order to list assets on balance sheet (8)

Answer 10

Cash
Notes Receivable
Accounts Receivable
Supplies
Prepaid Expenses
Land
Building
Equipment

Question 11

Long-term assets are listed in…

Answer 11

Order of Permanency

Question 12

Short-term assets are listed in…

Answer 12

Order of Liquidity

Question 13

Liabilities are listed in

Answer 13

Order of Maturity (when they’re due)

Question 14

Order to list liabilities on balance sheet (7)

Answer 14

• Notes Payable (Short-Term)
• Accounts Payable
• Unearned Revenues
• Salaries Payable
• Interest Payable
• Long-Term Notes Payable
• Mortgage Payable