1- _______ is the ability to make a decision in situations in which the answer is not clear-cut. ________ is the ability to make decisions for issues encountered by professionals in carrying out their day-to-day responsibilities.

Multiple Choice

• Judgment; Critical thinking

• Professional judgment; Judgment

• Ethics; Critical thinking

• Judgment; Professional judgment

2- True or False, Non-government NFPOs can report under either Part I (IFRS) or Part II of the CPA Canada Handbook, combined with relevant sections from Part IV of the Handbook.

3- True or Fasle, The entity should specify in the notes to the financial statements the part of the CPA Canada Handbook being used for reporting purposes.

4- Which of the following best describes the direction CPA Canada has adopted and implemented as their strategic plan for publicly accountable enterprises?

Multiple Choice

• To continue setting its own standards while at the same time consulting with FASB and the IASB.

• To harmonize the CPA Canada Handbook with IFRS.

• To harmonize the CPA Canada Handbook with U.S. GAAP.

• To continue to develop its own standards, in isolation from other standard setters, for all types of Canadian organizations.