This particular principle supports the application of conservative accounting that is an appropriate terms when dealing with the level of risk. It had been expressed to recognize revenue only during initiating sale to the customer. While agreeing upon the legal contract, in such a case, there might be a reasonable certainty in order to receive cash. There are distinct differences between the Canadian and US markets . It is widely believed that the Canadian historical experience is very different from that of the US, where most studies on stock market performance are based. As a significant example, approximately 40 percent to 45 percent of the capitalized Toronto Stock Exchange was in financial services stocks and natural resources stocks over the period of sampling. In addition to this, within the stocks of commodity, if one makes consistent investment in the longer run without the effort of timing the market platform, the average returns will be turn out to be zero . Due to this, actively operating managers of Canada have been successful in beating the index more often, when considering the counterparts of USA.