FULL TEST BANK FOR
f# f# f#
MODERN ADVANCED ACCOUNTING IN f# f# f#
CANADA 9TH EDITION HILTON Murray,
f# f# f# f# f#
f# Herauf Darrell f#
Chapter
01 Conceptual and Case Analysis Frameworks for Financial
f# f# f# f# f# f# f# f#
Reporting
f#
Multiple f#Choice f#Questions
1. Which f#of f#the f#following f#would f#NOT f#be f#a f#reason f#to f#obtain f#a f#greater
f#understanding f#of f#accounting f#practices f#in f#other f#nations?
A. Financial f#results f#are f#disclosed f#in f#different f#currencies.
B. One f#needs f#to f#be f#aware f#of f#differing f#disclosure f#requirements f#from f#nation
f#to f#nation, f#as f#this f#impacts f#the f#preparation f#of f#financial f#statements.
C. Income-smoothing f#may f#have f#affected f#a f#foreign f#subsidiary's f#results;
f#such f#smoothing f#practices f#are f#not f#permitted f#in f#North f#America.
D. Departures f#from f#the f#historical f#cost f#principle f#may f#be f#possible f#in f#other f#nations.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
2. Which f#of f#the f#following f#would f#be f#most f#affected f#by f#financial f#statements
f#being f#prepared f#under f#different f#accounting f#principles?
A. Reduced f#comparability.
B. Reduced f#reliability.
C. Increased f#complexity.
D. Inaccurate f#asset f#valuations.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
1-1
,3. The f#CPA f#Canada f#Handbook f#- f#Accounting f#is f#the f#handbook f#of f#Canadian
f#accounting f#standards. f#Why f#do f#companies f#in f#Canada f#ensure f#that f#their
f#financial f#reporting f#is f#consistent f#with f#Canadian f#GAAP?
A. Their f#bank f#requires f#them f#to f#do f#so.
B. Their f#auditors f#require f#them f#to f#do f#so.
C. Reporting f#under f#the f#CPA f#Canada f#Handbook f#- f#Accounting f#is f#required f#by
f#public f#companies' f#boards f#of f#directors.
D. Compliance f#with f#the f#CPA f#Canada f#Handbook f#- f#Accounting f#pronouncements
f#is f#usually f#required f#by f#many f#legal f#statutes.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
4. Which f#decision f#has f#Canada f#made f#with f#respect f#to f#financial
f#reporting f#for f#private f#enterprises?
A. To f#adopt f#the f#IFRS f#standards f#for f#small f#and f#medium-sized f#enterprises.
B. To f#retain f#the f#current f#standards.
C. To f#look f#to f#US f#GAAP f#for f#standards.
D. To f#develop f#and f#maintain f#its f#own f#standards f#for f#private f#enterprises.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
5. Starting f#in f#2011, f#what f# is f#the f#definition f#of f#a f#private f#enterprise f#(PE) f#under f#Canadian
f#GAAP?
A. A f#corporation f#that f#has f#no f#public f#shareholders.
B. A f#corporation f#that f#has f#less f#than f#500 f#shareholders f#and f#is f#not f#listed f#on f#a f#stock
f#exchange.
C. A f#corporation f#which f#is f#not f#profit f#oriented.
D. A f#profit f#oriented f#enterprise f#that f#has f#none f#of f#its f#issued f#and
f#outstanding f#financial f#instruments f#traded f#in f#a f#public f#market f#and f#does f#not
f#hold f#assets f#in f#a f#fiduciary f#capacity f#for f#a f#broad f#group f#of f#outsiders f#as f#one
f#of f#its f#primary f#businesses.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
1-2
,f#of f#organizations. f# Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
1-3
, 6. Which f#enterprises f#must f#report f#under f#IFRS f#in f#Canada?
A. All f#corporations, f#government f#agencies f#and f#private f#companies.
B. Public f#companies f#and f#private f#companies f#whose f#shareholders' f#equity f#is f#in f#excess f#of
$500,000,000 f#at f#any f#particular f#year f#end.
C. Public f#companies, f#private f#companies f#and f#not-for-profit f#organizations.
D. Publicly f#accountable f#enterprises.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-04 f#GAAP f#for f#Publicly f#Accountable f#Enterprises
7. What f#approach f#did f#Canada f#first f#decide f#to f#take f#with f#respect f#to f#convergence f#with f#IFRS
A. Harmonization f#of f#CPA f#Canada f#Handbook f#with f#IFRS.
B. Substituting f#IFRS f#for f#Canadian f#GAAP f#when f#approved f#by f#the f#IASB.
C. Adopting f#some f#but f#not f#necessarily f#all f#IFRSs f#by f#reviewing f#them f#on f#a f#case f#by f#case
f#basis.
D. Reviewing f#them f#with f#all f#publically f#accountable f#entities f#to f#see f#which
f#ones f#would f#be f#acceptable.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-04 f#GAAP f#for f#Publicly f#Accountable f#Enterprises
8. What f#choice(s) f#do f#private f#enterprises f#have f#in f#their f#financial f#reporting f#in f#Canada?
A. They f#have f#no f#choice f#at f#all; f#they f#will f#need f#to f#report f#under f#IFRS.
B. They f#may f#elect f#to f#continue f#with f#differential f#reporting.
C. They f#may f#adopt f#accounting f#principles f#that f#are f#appropriate f#to f#the f#circumstances.
D. They f#may f#elect f#to f#report f#under f#either f#IFRS f#or f#ASPE f#but f#once f#adopted,
f#must f#use f#all f#the f#standards.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
1-4
f# f# f#
MODERN ADVANCED ACCOUNTING IN f# f# f#
CANADA 9TH EDITION HILTON Murray,
f# f# f# f# f#
f# Herauf Darrell f#
Chapter
01 Conceptual and Case Analysis Frameworks for Financial
f# f# f# f# f# f# f# f#
Reporting
f#
Multiple f#Choice f#Questions
1. Which f#of f#the f#following f#would f#NOT f#be f#a f#reason f#to f#obtain f#a f#greater
f#understanding f#of f#accounting f#practices f#in f#other f#nations?
A. Financial f#results f#are f#disclosed f#in f#different f#currencies.
B. One f#needs f#to f#be f#aware f#of f#differing f#disclosure f#requirements f#from f#nation
f#to f#nation, f#as f#this f#impacts f#the f#preparation f#of f#financial f#statements.
C. Income-smoothing f#may f#have f#affected f#a f#foreign f#subsidiary's f#results;
f#such f#smoothing f#practices f#are f#not f#permitted f#in f#North f#America.
D. Departures f#from f#the f#historical f#cost f#principle f#may f#be f#possible f#in f#other f#nations.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
2. Which f#of f#the f#following f#would f#be f#most f#affected f#by f#financial f#statements
f#being f#prepared f#under f#different f#accounting f#principles?
A. Reduced f#comparability.
B. Reduced f#reliability.
C. Increased f#complexity.
D. Inaccurate f#asset f#valuations.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
1-1
,3. The f#CPA f#Canada f#Handbook f#- f#Accounting f#is f#the f#handbook f#of f#Canadian
f#accounting f#standards. f#Why f#do f#companies f#in f#Canada f#ensure f#that f#their
f#financial f#reporting f#is f#consistent f#with f#Canadian f#GAAP?
A. Their f#bank f#requires f#them f#to f#do f#so.
B. Their f#auditors f#require f#them f#to f#do f#so.
C. Reporting f#under f#the f#CPA f#Canada f#Handbook f#- f#Accounting f#is f#required f#by
f#public f#companies' f#boards f#of f#directors.
D. Compliance f#with f#the f#CPA f#Canada f#Handbook f#- f#Accounting f#pronouncements
f#is f#usually f#required f#by f#many f#legal f#statutes.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-01 f#Describe f#and f#apply f#the f#conceptual f#framework f#for f#financial
f#reporting. f # Topic: f#01-01 f#The f#Conceptual f#Framework f#for f#Financial f#Reporting
4. Which f#decision f#has f#Canada f#made f#with f#respect f#to f#financial
f#reporting f#for f#private f#enterprises?
A. To f#adopt f#the f#IFRS f#standards f#for f#small f#and f#medium-sized f#enterprises.
B. To f#retain f#the f#current f#standards.
C. To f#look f#to f#US f#GAAP f#for f#standards.
D. To f#develop f#and f#maintain f#its f#own f#standards f#for f#private f#enterprises.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
5. Starting f#in f#2011, f#what f# is f#the f#definition f#of f#a f#private f#enterprise f#(PE) f#under f#Canadian
f#GAAP?
A. A f#corporation f#that f#has f#no f#public f#shareholders.
B. A f#corporation f#that f#has f#less f#than f#500 f#shareholders f#and f#is f#not f#listed f#on f#a f#stock
f#exchange.
C. A f#corporation f#which f#is f#not f#profit f#oriented.
D. A f#profit f#oriented f#enterprise f#that f#has f#none f#of f#its f#issued f#and
f#outstanding f#financial f#instruments f#traded f#in f#a f#public f#market f#and f#does f#not
f#hold f#assets f#in f#a f#fiduciary f#capacity f#for f#a f#broad f#group f#of f#outsiders f#as f#one
f#of f#its f#primary f#businesses.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
1-2
,f#of f#organizations. f# Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
1-3
, 6. Which f#enterprises f#must f#report f#under f#IFRS f#in f#Canada?
A. All f#corporations, f#government f#agencies f#and f#private f#companies.
B. Public f#companies f#and f#private f#companies f#whose f#shareholders' f#equity f#is f#in f#excess f#of
$500,000,000 f#at f#any f#particular f#year f#end.
C. Public f#companies, f#private f#companies f#and f#not-for-profit f#organizations.
D. Publicly f#accountable f#enterprises.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-04 f#GAAP f#for f#Publicly f#Accountable f#Enterprises
7. What f#approach f#did f#Canada f#first f#decide f#to f#take f#with f#respect f#to f#convergence f#with f#IFRS
A. Harmonization f#of f#CPA f#Canada f#Handbook f#with f#IFRS.
B. Substituting f#IFRS f#for f#Canadian f#GAAP f#when f#approved f#by f#the f#IASB.
C. Adopting f#some f#but f#not f#necessarily f#all f#IFRSs f#by f#reviewing f#them f#on f#a f#case f#by f#case
f#basis.
D. Reviewing f#them f#with f#all f#publically f#accountable f#entities f#to f#see f#which
f#ones f#would f#be f#acceptable.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-04 f#GAAP f#for f#Publicly f#Accountable f#Enterprises
8. What f#choice(s) f#do f#private f#enterprises f#have f#in f#their f#financial f#reporting f#in f#Canada?
A. They f#have f#no f#choice f#at f#all; f#they f#will f#need f#to f#report f#under f#IFRS.
B. They f#may f#elect f#to f#continue f#with f#differential f#reporting.
C. They f#may f#adopt f#accounting f#principles f#that f#are f#appropriate f#to f#the f#circumstances.
D. They f#may f#elect f#to f#report f#under f#either f#IFRS f#or f#ASPE f#but f#once f#adopted,
f#must f#use f#all f#the f#standards.
Accessibility: f#Keyboard f#Navigation
f # Blooms: f#Remember
Difficulty: f#Easy
Learning f#Objective: f#01-02 f#Describe f#how f#accounting f#standards f#in f#Canada f#are f#tailored f#to f#different f#types
f#of f#organizations. f # Topic: f#01-05 f#GAAP f#for f#Private f#Enterprises
1-4
