Chapter 1, Problem 1Q

The principle of equity I. Is the principle behind a cooperative s interest on share capital Il. Is one which states that net surplus is not a profit but as excess of payments made by the members for the Loans borrowed, or the goods and services bought by them from the cooperative and Ill. Is one where an equal right of members to participate in the organization and to equitably share in the benefits accruing is established.    A. I, II and IIIB. I and IIIC. I and IID. I only

QUESTION TWO b. IFRS are relevant to various stakeholders. State the relevance of IFRSs to each of thefollowing stakeholders:i. Investorsii. Multinational companiesiii. Governments

Classify the following users of information as: Internal Users, External Trading Partner, External Stakeholder Internal Revenue Service Inventory control manager Board of directors Customers Lending institutions Securities and Exchange Commission Stockholders Chief executive officer Suppliers Bondholders

EXERCISE 6: SOURCES OF EQUITY FINANCING Match the following with the following equity investors: shareholders, risk capital investors, and government institutions. • Venture capitalist Common shareholders Export Development Canada • Angel investors • Preferred shareholders • Business Development Bank of Canada

Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other distributions transactions between the investor and the investee IV Interchange of managenal personnel V. Provision of essential technical information.

Conceptual Framework and Reporting Standard: Small and Medium Sized Enterprise 1. In SME, borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of funds. True or False? 2. Provision, in SME, shall be recognized if an entity has an obligation at the reporting date as a result of a past event and it is possible that the entity will be required to transfer economic benefits in settlement. True or False?   3. An entity can compute post-employment benefit by using either defined benefit plan or defined contribution plan. True or False?

Which of the following is NOT one of the three things financial markets and institutions enable households, firms, and governments to do? A. invest in capital B. eliminate risks C. smooth consumption expenditures D. trade risk

Which function of a financial intermediary reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings? Select one: a. Administration of the payments mechanism b. Information production services. c. Money supply management. d. Asset transformation services. e. Brokerage services.

The Investment and Merchant bankers in managing the IPOs provide one or more of the following services: Ensure legal compliance related to public issues Design and price financial instruments Market the issue to institutional and retail investors All of the above