PART A-(20 Marks, 30 minutes) Circle your answer to each of the following questions as being True or False. Each question is worth one mark. 1. The majority of business in Canada is conducted by True False 2. The three main business activities are financing, operating, and investing True False traded company's annual report generally includes audited financial statements (with auditor's report), notes to the financial statements, and managements discussion and analysis. True False 4. If a company hires honest ermployees and its top management acts with integrity, no internal control True False Both the statement of financial position and the statement of earnings will be impacted by each adjusting entry 5. True False of adjusting entries: those relating to prepayments and those relating to There are two main types accruals 6. True False 7. If a publicly traded company in Canada has an internal audit function, it does NOT need to have external auditors. True False 8. Most companies use the accrual basis of accounting because it is required under True False 9. A company's internal control system must be designed and maintained by its external auditors. True False 10. Closing entries are necessary to transfer balances of temporary accounts to retained earnings True False