Pdfcoffee com intermediate accounting testbank 2 pdf free,Pdfcoffee com intermediate accounting testbank 2 pdf free

CHAPTER 1 r




THE CANADIAN r



FINANCIAL REPORTING ENVIRONMENT
r r




MULTIPLE CHOICE—Conceptual
r


Answer No. Description
d 1. Accountingrcharacteristics.
a 2. Naturerofrfinancialraccounting.
c 3. Definitionrofrfinancialraccounting.
a 4. Financialrreportingrentity.
d 5. Efficientruserofrresources.
d 6. Capitalrallocationrprocess.
c 7. Assessingrmanagementrstewardship.
c 8. Objectivesrofrfinancialrreporting.
a 9. RolerofrAcSB.
c 10. BodyrresponsiblerforrsettingrGAAP.
b 11. Preparationrofrbiasedrinformation.
d 12. Partiesrinstrumentalrinrdevelopmentrofrreportingrstandards.
d 13. Stakeholdersrinrtherfinancialrreportingrenvironment..
a 14. “Duerprocess”.
d 15. Causesrofrsubprimerlendingrcrisis.
d 16. Managementrbias.
b 17. AdoptionrofrIFRS.
c 18. RolerofrOSC.
d 19. DefinitionrofrGAAP.
b 20. Changingrnaturerofrthereconomy.
d 21. Exerciserofrprofessionalrjudgement.
c 22. Majorrfactorsrinrtherreportingrenvironment.
a 23. Impactrofrtechnologyronrfinancialrreporting.
b 24. Naturerofrther“BalancedrScorecard”.
a 25. Responsibilityrforrfinancialrstatements.
d 26. GAAPrforrprivaterenterprises.
d 27. Reportingrprinciples
b 28. SOX.
a 29 AcSB’srstandardrsettingrprocess




TestrBank Chapterr1

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,1r-r2 TestrBankrforrIntermediaterAccounting,rNinthrCanadianrEdition

EXERCISES
Item Description
E1-30 Objectivesrofrfinancialrreporting.
E1-31
Rolerofrsecuritiesrcommissionsrandrstockrexchanges.rE
1-32 Userrneeds.
E1-33 SourcesrofrGAAP.
E1-34 StandardrSetting.
E1-35 Challengesrfacingrfinancialrreporting.
E1-36 Stakeholdersrinrtherfinancialrreportingrenvironment.




TestrBank Chapterr1

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, TherCanadianrFinancialrReportingrEnvironment 1r-r3

MULTIPLE CHOICE—Conceptual
r




1. Theressentialrcharacteristic(s)rofraccountingrisr(are)
a. communicationrofrfinancialrinformationrtorinterestedrpersons.
b. communicationrofrfinancialrinformationraboutreconomicrentities.
c. identification,rmeasurement,randrcommunicationrofrfinancialrinformation.
d. allrofrthese.

2. Financialraccountingrisrconcernedrwithrtherprocessrthatrculminatesrin
a. therpreparationrofrfinancialrreports.
b. specializedrreportsrforrinventoryrmanagementrandrcontrol.
c. specializedrreportsrforrincomertaxrcalculationrandrrecognition.
d. reportsronrchangesrinrstockrpricesrandrfuturerestimatesrofrmarketrposition.

3. Financialr accountingr canr ber broadlyr definedr asr ther arear ofr accountingr thatr preparesrfina
ncialrstatementsrtorberused
a byrpartiesrinternalrtortherbusinessrenterpriseronly.
b. byrinvestorsronly.
c. byrpartiesrbothrinternalrandrexternalrtortherbusinessrenterprise.
d. primarilyrbyrmanagement.

4. Therinformationrprovidedrbyrfinancialrreportingrpertainsrto
a. individualr businessr enterprises,rratherr thanrtor industriesr orranr economyr asr arwholer orrtor
membersrofrsocietyrasrconsumers.
b. businessr industries,rratherrthanrtor individualr enterprisesr orranr economyr asr arwholer orrtor
membersrofrsocietyrasrconsumers.
c. individualrbusinessrenterprises,rindustries,randranreconomyrasrarwhole,rratherrthanrtorme
mbersrofrsocietyrasrconsumers.
d. anr economyr asr ar wholer andr tor membersr ofr societyr asr consumers,r ratherr thanr torindi
vidualrenterprisesrorrindustries.

5. Whetherrarbusinessrisrsuccessfulrandrthrivesrisrdeterminedrby
a. freerenterprise.
b. competition.
c. markets.
d. allrofrthese.

6. Anreffectivercapitalrallocationrprocess
a. encouragesrinnovation.
b. promotesrproductivity.
c. providesranrefficientrandrliquidrmarketrforrbuyingrandrsellingrsecurities.
d. allrofrthese.




TestrBank Chapterr1

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7. Inrassessingrmanagementrstewardship,rusersrtraditionallyrreferrto
a. non-financialrmeasurements.
b. forward-lookingrdata.
c. historicalrdatar.
d. nonerofrthese.

8. Whichrofrtherfollowingrstatementsrisrnotranrobjectiverofrfinancialrreporting?
a. Providerinformationrthatrisrusefulrtorusersrinrmakingrresourcerallocationrdecisions.
b. Provider informationr aboutr anr entity’sr economicr resources,r obligations,r andr equity/netras
sets.
c. Providerinformationronrtherliquidationrvaluerofranrenterprise.
d. Provider informationraboutrchangesrinranrentity’sreconomicrresources,robligations,randreq
uity/netrassets.

9. Ther roler ofr ther Accountingr Standardsr Boardr (AcSB)r inr ther formulationr ofr accountingrprin
ciplesrinrCanadarcanrberbestrdescribedras
a. primary.
b. secondary.
c. sometimesrprimaryrandrsometimesrsecondary.
d. non-existent.

10. Ther bodyr thatr hasr ther responsibilityr tor setr generallyr acceptedr accountingr principlesr inrCa
nadarisrthe
a. FASB.
b. IASB.
c. AcSB.
d. OSC.

11. Therpreparationrbyrsomercompaniesrofrbiasedrinformationrisrsometimesrreferredrtoras
a. conservativerfinancialrreporting.
b. aggressiverfinancialrreporting.
c. fullrdisclosurerofrallrmaterialrfacts.
d. managementrstewardship.

12. Whichr ofrtherfollowingrpartiesr isr notr instrumentalr inrther developmentr ofrfinancialr reportingrsta
ndardsrinrCanada?
a. therFinancialrAccountingrStandardsrBoardr(FASB)
b. therProvincialrSecuritiesrCommissions
c. therInternationalrAccountingrStandardsrBoardr(IASB)
d. therAmericanrInstituterofrCertifiedrPublicrAccountants

13. Whichr ofr ther followingr isr notr ar stakeholderr inr ther Canadianr Financialr ReportingrEnvironme
nt?
a. Investors
b. Creditors
c. Auditors
d. Allrofrtheserarerstakeholders




TestrBank Chapterr1

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