Which of the following is correct with respect to generally accepted accounting principles?
A) Public and private businesses can no longer use generally accepted accounting principles.
B) They are used in many foreign countries but not in Canada.
C) Public companies in Canada have moved away from using generally accepted accounting principles and have adopted adopted International Financial Reporting Standards (IFRS).
D) Private companies must use the new International Financial Reporting Standards (IFRS).
E) None of these statements is correct.

Question

Quizplus · Accepted Answer

Public companies in Canada have indeed moved away from using generally accepted accounting principles and have adopted IFRS. Option A is incorrect as GAAP is still widely used by both public and private businesses. Option B is incorrect as many countries including Canada use GAAP. Option D is incorrect as private companies have the option to use either GAAP or IFRS.

Which of the Following Is Correct with Respect to Generally