Question 1 True or False Questions (10 marks)

1. Total liabilities are equal to the entity's net assets ().

1. Private companies in Canada can choose to adopt either ASPE or IFRS ().

1. Compared to U.S., accounting practices in Canada are more defensible ().

1. Financial analysts are a type of stakeholders in the financial reporting environment ().

1. Accounting standards can enhance the comparability of accounting information ().

1. Information asymmetry problems can be completely solved by developing accounting standards ().

1. The relevance of accounting information is reflected by its predictive and feedback values ().

1. Under IFRS, they entity reports comprehensive income but does not report net income on the statement of comprehensive income ().

1. Historical costs are less reliable information than estimated current values ().

1. Relevance of accounting usually increases in its timeliness ().