FULL TEST BANK FOR
l# l# l#
MODERN ADVANCED ACCOUNTING IN CANADA 9TH
l# l# l# l# l#
EDITION HILTON
l# l# Murray, Herauf Darrell
l# l# l#
Chapter
01 Conceptual and Case Analysis Frameworks for
l# l# l# l# l# l# l#
Financial Reporting
l# l#
Multiple l#Choice l#Questions
1. Which l#of l#the l#following l#would l#NOT l#be l#a l#reason l#to l#obtain l#a
l#greater l#understanding l#of l#accounting l#practices l#in l#other l#nations?
A. Financial l#results l#are l#disclosed l#in l#different l#currencies.
B. One l#needs l#to l#be l#aware l#of l#differing l#disclosure l#requirements l#from
l#nation l#to l#nation, l#as l#this l#impacts l#the l#preparation l#of l#financial
l#statements.
C. Income-smoothing l#may l#have l#affected l#a l#foreign l#subsidiary's
l#results; l#such l#smoothing l#practices l#are l#not l#permitted l#in l#North
l#America.
D. Departures l#from l#the l#historical l#cost l# principle l#may l#be l#possible l# in l#other l#nation
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
2. Which l#of l#the l#following l#would l#be l#most l#affected l#by l#financial
l#statements l#being l#prepared l#under l#different l#accounting l#principles?
A. Reduced l#comparability.
B. Reduced l#reliability.
C. Increased l#complexity.
D. Inaccurate l#asset l#valuations.
1-1
,Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
1-2
,3. The l#CPA l#Canada l#Handbook l#- l#Accounting l#is l#the l#handbook l#of
l#Canadian l#accounting l#standards. l#Why l#do l#companies l#in l#Canada l#ensure
l#that l#their l#financial l#reporting l#is l#consistent l#with l#Canadian l#GAAP?
A. Their l# bank l#requires l#them l#to l# do l#so.
B. Their l#auditors l#require l#them l#to l# do l#so.
C. Reporting l#under l#the l#CPA l#Canada l#Handbook l#- l#Accounting l#is l#required l#by
l#public l#companies' l#boards l#of l#directors.
D. Compliance l#with l#the l#CPA l#Canada l#Handbook l#- l#Accounting
l#pronouncements l#is l#usually l#required l#by l#many l#legal l#statutes.
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
4. Which l#decision l#has l#Canada l#made l#with l#respect l#to l#financial
l#reporting l#for l#private l#enterprises?
A. To l#adopt l#the l#IFRS l#standards l#for l#small l#and l# medium-sized l#enterprises.
B. To l#retain l#the l#current l#standards.
C. To l#look l#to l#US l#GAAP l# for l#standards.
D. To l#develop l#and l#maintain l#its l#own l#standards l#for l#private l#enterprises.
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-02 l#Describe l#how l#accounting l#standards l#in l#Canada l#are l#tailored
l#to l#different l#types l#of l#organizations. l # Topic: l#01-05 l#GAAP l#for l#Private l#Enterprises
5. Starting l#in l#2011, l#what l # is l#the l#definition l#of l#a l#private l#enterprise l#(PE) l#under
l#Canadian l#GAAP?
A. A l#corporation l#that l# has l#no l#public l#shareholders.
B. A l#corporation l#that l#has l#less l#than l#500 l#shareholders l#and l# is l#not l# listed l#on l#a
l#stock l#exchange.
C. A l#corporation l#which l#is l#not l#profit l#oriented.
D. A l#profit l#oriented l#enterprise l#that l#has l#none l#of l#its l#issued l#and
l#outstanding l#financial l#instruments l#traded l#in l#a l#public l#market l#and
l#does l#not l#hold l#assets l#in l#a l#fiduciary l#capacity l#for l#a l#broad l#group
l#of l#outsiders l#as l#one l#of l#its l#primary l#businesses.
Accessibility: l#Keyboard
1-3
, l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-02 l#Describe l#how l#accounting l#standards l#in l#Canada l#are l#tailored
l#to l#different l#types l#of l#organizations. l # Topic: l#01-05 l#GAAP l#for l#Private l#Enterprises
1-4
l# l# l#
MODERN ADVANCED ACCOUNTING IN CANADA 9TH
l# l# l# l# l#
EDITION HILTON
l# l# Murray, Herauf Darrell
l# l# l#
Chapter
01 Conceptual and Case Analysis Frameworks for
l# l# l# l# l# l# l#
Financial Reporting
l# l#
Multiple l#Choice l#Questions
1. Which l#of l#the l#following l#would l#NOT l#be l#a l#reason l#to l#obtain l#a
l#greater l#understanding l#of l#accounting l#practices l#in l#other l#nations?
A. Financial l#results l#are l#disclosed l#in l#different l#currencies.
B. One l#needs l#to l#be l#aware l#of l#differing l#disclosure l#requirements l#from
l#nation l#to l#nation, l#as l#this l#impacts l#the l#preparation l#of l#financial
l#statements.
C. Income-smoothing l#may l#have l#affected l#a l#foreign l#subsidiary's
l#results; l#such l#smoothing l#practices l#are l#not l#permitted l#in l#North
l#America.
D. Departures l#from l#the l#historical l#cost l# principle l#may l#be l#possible l# in l#other l#nation
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
2. Which l#of l#the l#following l#would l#be l#most l#affected l#by l#financial
l#statements l#being l#prepared l#under l#different l#accounting l#principles?
A. Reduced l#comparability.
B. Reduced l#reliability.
C. Increased l#complexity.
D. Inaccurate l#asset l#valuations.
1-1
,Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
1-2
,3. The l#CPA l#Canada l#Handbook l#- l#Accounting l#is l#the l#handbook l#of
l#Canadian l#accounting l#standards. l#Why l#do l#companies l#in l#Canada l#ensure
l#that l#their l#financial l#reporting l#is l#consistent l#with l#Canadian l#GAAP?
A. Their l# bank l#requires l#them l#to l# do l#so.
B. Their l#auditors l#require l#them l#to l# do l#so.
C. Reporting l#under l#the l#CPA l#Canada l#Handbook l#- l#Accounting l#is l#required l#by
l#public l#companies' l#boards l#of l#directors.
D. Compliance l#with l#the l#CPA l#Canada l#Handbook l#- l#Accounting
l#pronouncements l#is l#usually l#required l#by l#many l#legal l#statutes.
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-01 l#Describe l#and l#apply l#the l#conceptual l#framework
l#for l#financial l#reporting. l # Topic: l#01-01 l#The l#Conceptual l#Framework l#for
l#Financial l#Reporting
4. Which l#decision l#has l#Canada l#made l#with l#respect l#to l#financial
l#reporting l#for l#private l#enterprises?
A. To l#adopt l#the l#IFRS l#standards l#for l#small l#and l# medium-sized l#enterprises.
B. To l#retain l#the l#current l#standards.
C. To l#look l#to l#US l#GAAP l# for l#standards.
D. To l#develop l#and l#maintain l#its l#own l#standards l#for l#private l#enterprises.
Accessibility: l#Keyboard
l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-02 l#Describe l#how l#accounting l#standards l#in l#Canada l#are l#tailored
l#to l#different l#types l#of l#organizations. l # Topic: l#01-05 l#GAAP l#for l#Private l#Enterprises
5. Starting l#in l#2011, l#what l # is l#the l#definition l#of l#a l#private l#enterprise l#(PE) l#under
l#Canadian l#GAAP?
A. A l#corporation l#that l# has l#no l#public l#shareholders.
B. A l#corporation l#that l#has l#less l#than l#500 l#shareholders l#and l# is l#not l# listed l#on l#a
l#stock l#exchange.
C. A l#corporation l#which l#is l#not l#profit l#oriented.
D. A l#profit l#oriented l#enterprise l#that l#has l#none l#of l#its l#issued l#and
l#outstanding l#financial l#instruments l#traded l#in l#a l#public l#market l#and
l#does l#not l#hold l#assets l#in l#a l#fiduciary l#capacity l#for l#a l#broad l#group
l#of l#outsiders l#as l#one l#of l#its l#primary l#businesses.
Accessibility: l#Keyboard
1-3
, l#Navigation l # Blooms: l#Remember
Difficulty: l#Easy
Learning l#Objective: l#01-02 l#Describe l#how l#accounting l#standards l#in l#Canada l#are l#tailored
l#to l#different l#types l#of l#organizations. l # Topic: l#01-05 l#GAAP l#for l#Private l#Enterprises
1-4
