Test Bank for Intermediate Accounting Volume 1, 9th Canadian Edition by Beechy

Complete Answers Included ✅
Chap 01 9ce Beechy
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The main purpose of financial accounting is to communicate useful financial information to
decision-makers both inside and outside of the business organization.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-02 Describe the objectives of financial reporting.
Topic : 01-02 Objectives of Financial Reporting
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-01 The main purpose of financial accounting is ...



2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-02 The Canadian Business Corporations Act manda...




1

,3) Private companies in Canada may choose between IFRS or ASPE.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-03 Private companies in Canada may choose betwe...



4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
U.S has adopted IFRS completely.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-04 Canada has adapted its own pre-existing stan...



5) LPP Inc. is a public company in Canada whose shares are traded on the New York Stock
Exchange. LPP Inc. may use either IFRS or a disclosed basis of accounting (DBA).
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Difficulty : Medium
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-05 LPP Inc. is a public company in Canada...




2

,6) Only publicly traded companies in Canada are required to adopt IFRS.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-06 Only publicly traded companies in Canada are...



7) Earnings quality is said to be high when most of a company's earnings are the result of its
continuing operations.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-03 Recognize the financial reporting needs of external users.
Topic : 01-03 External-User Objectives
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-07 Earnings quality is said to be high when mos...



8) Income tax deferral, tax minimization and tax evasion are all illegal in Canada.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-03 Recognize the financial reporting needs of external users.
Topic : 01-03 External-User Objectives
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-08 Income tax deferral, tax minimization...




3

, 9) In Canada, income for tax and accounting purposes may be different.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-03 Recognize the financial reporting needs of external users.
Topic : 01-03 External-User Objectives
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-09 In Canada, income for tax and accounting pur...



10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-04 Recognize the financial reporting motivations of preparers.
Topic : 01-04 Preparer Motivations
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-10 External users of a com...



11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Identify the various accounting standards used by Canadian entities.
Topic : 01-01 Accounting Standards in Canada
Beechy - Chapter 01
Source : Chapter 01 Test Bank - Static > TB 01-11 In Canada, IFRS standards were essentially c...




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