TEST BANK For Modern Advanced Accounting In Canada, 10th Edition By Darrell Herauf, Chima Mbagwu, Verified Chapters 1 - 12, Complete Newest Version

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Modern Advanced Accounting In Canada
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10th Edition nn




By Darrell Herauf, Chima Mbagwu
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Verified Chapter's 1 - 12 | Complete
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1-1

,TABLE OF CONTENTS nn nn




CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
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CHAPTER 2 Investments in Equity Securities
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CHAPTER 3 Business Combinations
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CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
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CHAPTER 5 Consolidation Subsequent to Acquisition Date
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CHAPTER 6 Intercompany Inventory and Land Profits
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CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
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CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
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CHAPTER 9 Other Consolidation Reporting Issues
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CHAPTER 10 Foreign Currency Transactions
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CHAPTER 11 Translation and Consolidation of Foreign Operations
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CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
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1-2

, Chapter 01 nn




nn Conceptual and Case Analysis Frameworks for Financial Reporting nn nn nn nn nn nn nn




Multiple Choice Questions nn nn




1. Which of the following would NOT be a reason to obtain a greater understanding
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of accounting practices in other nations?
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A. Financial results are disclosed in different currencies.
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B. One needs to be aware of differing disclosure requirements from nation to nation, as
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this impacts the preparation of financial statements.
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C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing nn nn nn nn nn nn nn nn nn



practices are not permitted in North America.
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D. Departures from the historical cost principle may be possible in other nations.
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Accessibility: Keyboard Navigation
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Blooms: Remember
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Difficulty: Easy nn


Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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Topic: 01-01 The Conceptual Framework for Financial Reporting
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2. Which of the following would be most affected by financial statements being
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prepared under different accounting principles?
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A. Reduced comparability. nn



B. Reduced reliability. nn



C. Increased complexity. nn



D. Inaccurate asset valuations. nn nn




Accessibility: Keyboard Navigation
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Blooms: Remember
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Difficulty: Easy nn


Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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Topic: 01-01 The Conceptual Framework for Financial Reporting
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1-3

, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
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standards. Why do companies in Canada ensure that their financial reporting is
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consistent with Canadian GAAP?
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A. Their bank requires them to do so.
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B. Their auditors require them to do so.
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C. Reporting under the CPA Canada Handbook - Accounting is required by public
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companies' boards of directors.
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D. Compliance with the CPA Canada Handbook - Accounting pronouncements is
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usually required by many legal statutes.
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Accessibility: Keyboard Navigation
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Blooms: Remember
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Difficulty: Easy nn


Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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Topic: 01-01 The Conceptual Framework for Financial Reporting
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4. Which decision has Canada made with respect to financial reporting for private
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enterprises?
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A. To adopt the IFRS standards for small and medium-sized enterprises.
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B. To retain the current standards.
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C. To look to US GAAP for standards.
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D. To develop and maintain its own standards for private enterprises.
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Accessibility: Keyboard Navigation
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Blooms: Remember
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Difficulty: Easy nn


Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of
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organizations. Topic: 01-05 GAAP for Private Enterprises
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5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
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A. A corporation that has no public shareholders.
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B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
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C. A corporation which is not profit oriented.
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D. A profit oriented enterprise that has none of its issued and outstanding financial
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instruments traded in a public market and does not hold assets in a fiduciary capacity for
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a broad group of outsiders as one of its primary businesses.
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Accessibility: Keyboard Navigation
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Blooms: Remember
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Difficulty: Easy nn


Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of
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organizations. Topic: 01-05 GAAP for Private Enterprises
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1-4