TEST BANK for Modern Advanced Accounting in Canada 9th Edition by Hilton Murray, Herauf Darrell All chapters 1-12 fully covered

TEST BANK
Modern Advanced Accounting in Canada
9th Edition by Hilton Murray, Herauf Darrell
All chapters 1-12




1-1

,ChapterU01UConceptualUandUCaseUAnalysisUFrameworksUforUFinancialUReporting

MultipleUChoiceUQuestions


1. WhichUofUtheUfollowingUwouldUNOTUbeUaUreasonUtoUobtainUaUgreaterUunderstandingUofUaccou
ntingUpracticesUinUotherUnations?
A. FinancialUresultsUareUdisclosedUinUdifferentUcurrencies.
B. OneUneedsUtoUbeUawareUofUdifferingUdisclosureUrequirementsUfromUnationUtoUnation,UasUthisUimpac
tsUtheUpreparationUofUfinancialUstatements.
C. Income-
smoothingUmayUhaveUaffectedUaUforeignUsubsidiary'sUresults;UsuchUsmoothingUpracticesUareUnotU
permittedUinUNorthUAmerica.
D. DeparturesUfromUtheUhistoricalUcostUprincipleUmayUbeUpossibleUinUotherUnations.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
Learning UObjective:U01-01UDescribeUandUapplyUtheUconceptualUframeworkUforUfinancialUreporting.U Topic:U01-
01UTheUConceptualUFrameworkUforUFinancialUReporting



2. WhichUofUtheUfollowingUwouldUbeUmostUaffectedUbyUfinancialUstatementsUbeingUpreparedUunderU
differentUaccountingUprinciples?
A. ReducedUcomparability.
B. ReducedUreliability.
C. IncreasedUcomplexity.
D. InaccurateUassetUvaluations.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
Learning UObjective:U01-01UDescribeUandUapplyUtheUconceptualUframeworkUforUfinancialUreporting.U Topic:U01-
01UTheUConceptualUFrameworkUforUFinancialUReporting




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,3. TheUCPAUCanadaUHandbookU-
UAccountingUisUtheUhandbook UofUCanadianUaccountingUstandards.UWhyUdoUcompaniesUinUCanadaU

ensureUthatUtheirUfinancialUreportingUisUconsistentUwithUCanadianUGAAP?
A. TheirUbankUrequiresUthemUtoUdoUso.
B. TheirUauditorsUrequireUthemUtoUdoUso.
C. ReportingUunderUtheUCPAUCanadaUHandbookU-
UAccountingUisUrequiredUbyUpublic Ucompanies'UboardsUofUdirectors.

D. ComplianceUwithUtheUCPAUCanadaUHandbookU-
UAccountingUpronouncements UisUusuallyUrequiredUbyUmanyUlegalUstatutes.




Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
Learning UObjective:U01-01UDescribeUandUapplyUtheUconceptualUframeworkUforUfinancialUreporting.U Topic:U01-
01UTheUConceptualUFrameworkUforUFinancialUReporting



4. WhichUdecisionUhasUCanadaUmadeUwithUrespectUtoUfinancialUreportingUforUprivateUenterp
rises?
A. ToUadoptUtheUIFRSUstandardsUforUsmallUandUmedium-sizedUenterprises.
B. ToUretainUtheUcurrentUstandards.
C. ToUlookUtoUUSUGAAPUforUstandards.
D. ToUdevelopUandUmaintainUitsUownUstandardsUforUprivateUenterprises.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
LearningUObjective:U01-
02UDescribeUhowUaccountingUstandardsUinUCanadaUareUtailoredUtoUdifferentUtypesUofUorganizations.U Topic:U01-
05UGAAPUforUPrivateUEnterprises

5. StartingUinU2011,UwhatU isUtheUdefinitionUofUaUprivateUenterpriseU(PE)UunderUCanadianUGAAP?
A. AUcorporationUthatUhasUnoUpublicUshareholders.
B. AUcorporationUthatUhasUlessUthanU500UshareholdersUandUisUnotUlistedUonUaUstockUexchange.
C. AUcorporationUwhichUisUnotUprofitUoriented.
D. AUprofitUorientedUenterpriseUthatUhasUnoneUofUitsUissuedUandUoutstandingUfinancialUinstrumentsUt
radedUinUaUpublicUmarketUandUdoesUnotUholdUassetsUinUaUfiduciaryUcapacityUforUaUbroadUgroupUofUout
sidersUasUoneUofUitsUprimaryUbusinesses.

Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
LearningUObjective:U01-
02UDescribeUhowUaccountingUstandardsUinUCanadaUareUtailoredUtoUdifferentUtypesUofUorganizations.U Topic:U01-
05UGAAPUforUPrivateUEnterprises




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, 6. WhichUenterprisesUmustUreportUunderUIFRSUinUCanada?
A. AllUcorporations,UgovernmentUagenciesUandUprivateUcompanies.
B. PublicUcompaniesUandUprivateUcompaniesUwhoseUshareholders'UequityUisUinUexcessUof
$500,000,000UatUanyUparticularUyearUend.
C. PublicUcompanies,UprivateUcompaniesUandUnot-for-profitUorganizations.
D. PubliclyUaccountableUenterprises.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
LearningUObjective:U01-
02UDescribeUhowUaccountingUstandardsUinUCanadaUareUtailoredUtoUdifferentUtypesUofUorganizations.U Topic:U01-
04UGAAPUforUPubliclyUAccountableUEnterprises



7. WhatUapproachUdidUCanadaUfirstUdecideUtoUtakeUwithUrespectUtoUconvergenceUwithUIFRS?
A. HarmonizationUofUCPAUCanadaUHandbookUwithUIFRS.
B. SubstitutingUIFRSUforUCanadianUGAAPUwhenUapprovedUbyUtheUIASB.
C. AdoptingUsomeUbutUnotUnecessarilyUallUIFRSsUbyUreviewingUthemUonUaUcaseUbyUcaseUbasis.
D. ReviewingUthemUwithUallUpublicallyUaccountableUentitiesUtoUseeUwhichUonesUwouldUbeUaccept
able.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
LearningUObjective:U01-
02UDescribeUhowUaccountingUstandardsUinUCanadaUareUtailoredUtoUdifferentUtypesUofUorganizations.U Topic:U01-
04UGAAPUforUPubliclyUAccountableUEnterprises



8. WhatUchoice(s)UdoUprivateUenterprisesUhaveUinUtheirUfinancialUreportingUinUCanada?
A. TheyUhaveUnoUchoiceUatUall;UtheyUwillUneedUtoUreportUunderUIFRS.
B. TheyUmayUelectUtoUcontinueUwithUdifferentialUreporting.
C. TheyUmayUadoptUaccountingUprinciplesUthatUareUappropriateUtoUtheUcircumstances.
D. TheyUmayUelectUtoUreportUunderUeitherUIFRSUorUASPEUbutUonceUadopted,UmustUuseUallUtheUstand
ards.


Accessibility:UKeyboardUNavigationU Blooms:U
Remember
Difficulty:UEasy
LearningUObjective:U01-
02UDescribeUhowUaccountingUstandardsUinUCanadaUareUtailoredUtoUdifferentUtypesUofUorganizations.U Topic:U01-
05UGAAPUforUPrivateUEnterprises




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