Test Bank for Modern Advanced Accounting In Canada 9th Edition by Hilton Murray, Herauf Darrell

TEST BANK For b b




Modern Advanced Accounting In Canada
b b b b




10th Edition b




By Darrell Herauf, Chima Mbagwu
b b b b




Verified Chapter's 1 - 12 | Complete
b b b b b b




1-1

,TABLE OF CONTENTS b b




CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
b b b b b b b b b




CHAPTER 2 Investments in Equity Securities
b b b b b




CHAPTER 3 Business Combinations
b b b




CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
b b b b b b




CHAPTER 5 Consolidation Subsequent to Acquisition Date
b b b b b b




CHAPTER 6 Intercompany Inventory and Land Profits
b b b b b b




CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
b b b b b b b b b b




CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
b b b b b b b b




CHAPTER 9 Other Consolidation Reporting Issues
b b b b b




CHAPTER 10 Foreign Currency Transactions
b b b b




CHAPTER 11 Translation and Consolidation of Foreign Operations
b b b b b b b




CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
b b b b b b b b




1-2

, Chapter01 b




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




Multiple Choice Questions b b




1. Which of the following would NOT be a reason to obtain a greater understanding of
b b b b b b b b b b b b b b




accounting practices in other nations?
b b b b b




A. Financial results are disclosed in different currencies.
b b b b b b




B. One needs to be aware of differing disclosure requirements from nation to nation, as this
b b b b b b b b b b b b b b




impacts the preparation of financial statements.
b b b b b b




C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing b b b b b b b b b




practices are not permitted in North America.
b b b b b b b




D. Departures from the historical cost principle may be possible in other nations.
b b b b b b b b b b b




Accessibility: Keyboard Navigation
b b



bBlooms: Remember
b



Difficulty: Easy b



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
b b b b b b b b b b b b



01-01 The Conceptual Framework for Financial Reporting
b b b b b b b




2. Which ofthe following would be most affected by financial statements being prepared
b b b b b b b b b b b b




under different accounting principles?
b b b b




A. Reduced comparability. b




B. Reduced reliability. b




C. Increased complexity. b




D. Inaccurate asset valuations. b b




Accessibility: Keyboard Navigation
b b



bBlooms: Remember
b



Difficulty: Easy b



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
b b b b b b b b b b b b



01-01 The Conceptual Framework for Financial Reporting
b b b b b b b




1-3

, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
b b b b b b b b b b b




standards. Whydo companies in Canada ensure that their financial reporting is consistent
b b b b b b b b b b b b b




with Canadian GAAP?
b b b




A. Their bank requires them to do so.
b b b b b b




B. Their auditors require them to do so.
b b b b b b




C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
b b b b b b b b b b b b




boards of directors.
b b b




D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually b b b b b b b b b b




required by many legal statutes.
b b b b b




Accessibility: Keyboard Navigation b b



bBlooms: Remember b



Difficulty: Easy b



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
b b b b b b b b b b b b



01-01 The Conceptual Framework for Financial Reporting
b b b b b b b




4. Which decision has Canada made with respect to financial reporting for private
b b b b b b b b b b b




enterprises?
b




A. To adopt the IFRS standards for small and medium-sized enterprises.
b b b b b b b b b




B. To retain the current standards.
b b b b




C. To look to US GAAP for standards.
b b b b b b




D. To develop and maintain its own standards for private enterprises.
b b b b b b b b b




Accessibility: Keyboard Navigation b b



bBlooms: Remember b



Difficulty: Easy b



Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
b b b b b b b b b b b b b b b



bTopic: 01-05 GAAP for Private Enterprises
b b b b b




5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
b b b b b b b b b b b b b b




A. A corporation that has no public shareholders.
b b b b b b




B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
b b b b b b b b b b b b b b b




C. A corporation which is not profit oriented.
b b b b b b




D. A profit oriented enterprise that has none of its issued and outstanding financial
b b b b b b b b b b b b




instruments traded in a public market and does not hold assets in a fiduciary capacity for a
b b b b b b b b b b b b b b b b b




broad group of outsiders as one of its primary businesses.
b b b b b b b b b b




Accessibility: Keyboard Navigation b b



bBlooms: Remember b



Difficulty: Easy b



Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
b b b b b b b b b b b b b b b



bTopic: 01-05 GAAP for Private Enterprises
b b b b b




1-4