, TEST ITEM FILE
Betty Wong
Ingrid McLeod-Dick
Advanced Financial
Accounting
Seventh Canadian Edition
Thomas H. Beechy
York University
V. Umashanker Trivedi
York University
Kenneth MacAulay
St. Francis Xavier University
Toronto
ISBN: 978-0-133-13508-4
Copyright © 2014 Pearson Canada Inc. All rights reserved.
This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching
their courses and assessing student learning. Dissemination or sale of any part of this work (including on the
Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to
instructors who have adopted Advanced Financial Accounting, Seventh Canadian Edition, by Beechy, Trivedi, and
MacAulay, to post this material online only if the use of the website is restricted by access codes to students in
the instructor’s class that is using the textbook and provided the reproduced material bears this copyright
notice.
, Beechy, Trivedi, MacAulay Advanced Financial Accounting, Seventh Edition
Chapter 1: Setting the Stage
Chapter 2: Intercorporate Equity Investments: An Introduction
Chapter 3: Business Combinations
Chapter 4: Wholly-Owned Subsidiaries: Reporting Subsequent Acquisitions
Chapter 5: Consolidation of Non-Wholly Owned Subsidiaries
Chapter 6: Subsequent-Year Consolidations: General Approach
Chapter 7: Segment and Interim Reporting
Chapter 8: Foreign Currency Transactions and Hedges
Chapter 9: Reporting Foreign Operations
Chapter 10: Financial Reporting for Non-for-Profit Organizations
Chapter 11: Public Sector Financial Reporting
Appendix 3A: Income Tax Allocation
Appendix 4A: Income Tax Allocation Subsequent to Acquisitions
Appendix 4B: Goodwill Impairment Test
Online Appendix 5A: Step Purchases
Online Appendix 5B: Decreases in Ownership Interest
Online Appendix 6A: Preferred and Restricted Shares of Investee Corporation
Online Appendix 6B: Intercompany Bond Holdings
Appendix 10A: Fund Accounting
Copyright © 2014 Pearson Canada Inc.
, Beechy, Trivedi, MacAulay Advanced Financial Accounting, Seventh Edition
Chapter 1 Setting the Stage
1) What do business enterprises have that NFPs do not have?
A) Specified products or services
B) Identifiable customers or clients
C) Employees
D) Boards of directors
Answer: B
Page Ref: 3
Learning Obj.: 1.1
Difficulty: Easy
2) Which of the following statements about the adoption of IFRS is true?
A) Many European countries adopted IFRS prior to 2011.
B) Canada adopted IFRS in 2012.
C) All European and North American countries adopted IFRS in 2011.
D) All European, Asian, and African countries adopted IFRS in 2011.
Answer: A
Page Ref: 3
Learning Obj.: 1.1
Difficulty: Easy
3) Why has the reputation of U.S. accounting standards decreased in recent years?
A) The U.S. deficit is at a record high.
B) Many U.S. businesses have declared bankruptcy.
C) There have been some notable American accounting scandals, such as Enron.
D) Lengthy prison sentences have been given to unethical American executives, such as Bernie Madoff.
Answer: C
Page Ref: 4
Learning Obj.: 1.2
Difficulty: Easy
4) Which of the following is true about the standards for publicly accountable enterprises in the CICA
Handbook, Part I?
A) The standards are similar to U.S. GAAP.
B) The standards are adaptations of IFRS that have been tailored to Canadian circumstances.
C) The standards are similar to ASPE.
D) The standards are identical, word for word, to IFRS.
Answer: D
Page Ref: 5
Learning Obj.: 1.2
Difficulty: Easy
Copyright © 2014 Pearson Canada Inc.
1-1
Betty Wong
Ingrid McLeod-Dick
Advanced Financial
Accounting
Seventh Canadian Edition
Thomas H. Beechy
York University
V. Umashanker Trivedi
York University
Kenneth MacAulay
St. Francis Xavier University
Toronto
ISBN: 978-0-133-13508-4
Copyright © 2014 Pearson Canada Inc. All rights reserved.
This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching
their courses and assessing student learning. Dissemination or sale of any part of this work (including on the
Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to
instructors who have adopted Advanced Financial Accounting, Seventh Canadian Edition, by Beechy, Trivedi, and
MacAulay, to post this material online only if the use of the website is restricted by access codes to students in
the instructor’s class that is using the textbook and provided the reproduced material bears this copyright
notice.
, Beechy, Trivedi, MacAulay Advanced Financial Accounting, Seventh Edition
Chapter 1: Setting the Stage
Chapter 2: Intercorporate Equity Investments: An Introduction
Chapter 3: Business Combinations
Chapter 4: Wholly-Owned Subsidiaries: Reporting Subsequent Acquisitions
Chapter 5: Consolidation of Non-Wholly Owned Subsidiaries
Chapter 6: Subsequent-Year Consolidations: General Approach
Chapter 7: Segment and Interim Reporting
Chapter 8: Foreign Currency Transactions and Hedges
Chapter 9: Reporting Foreign Operations
Chapter 10: Financial Reporting for Non-for-Profit Organizations
Chapter 11: Public Sector Financial Reporting
Appendix 3A: Income Tax Allocation
Appendix 4A: Income Tax Allocation Subsequent to Acquisitions
Appendix 4B: Goodwill Impairment Test
Online Appendix 5A: Step Purchases
Online Appendix 5B: Decreases in Ownership Interest
Online Appendix 6A: Preferred and Restricted Shares of Investee Corporation
Online Appendix 6B: Intercompany Bond Holdings
Appendix 10A: Fund Accounting
Copyright © 2014 Pearson Canada Inc.
, Beechy, Trivedi, MacAulay Advanced Financial Accounting, Seventh Edition
Chapter 1 Setting the Stage
1) What do business enterprises have that NFPs do not have?
A) Specified products or services
B) Identifiable customers or clients
C) Employees
D) Boards of directors
Answer: B
Page Ref: 3
Learning Obj.: 1.1
Difficulty: Easy
2) Which of the following statements about the adoption of IFRS is true?
A) Many European countries adopted IFRS prior to 2011.
B) Canada adopted IFRS in 2012.
C) All European and North American countries adopted IFRS in 2011.
D) All European, Asian, and African countries adopted IFRS in 2011.
Answer: A
Page Ref: 3
Learning Obj.: 1.1
Difficulty: Easy
3) Why has the reputation of U.S. accounting standards decreased in recent years?
A) The U.S. deficit is at a record high.
B) Many U.S. businesses have declared bankruptcy.
C) There have been some notable American accounting scandals, such as Enron.
D) Lengthy prison sentences have been given to unethical American executives, such as Bernie Madoff.
Answer: C
Page Ref: 4
Learning Obj.: 1.2
Difficulty: Easy
4) Which of the following is true about the standards for publicly accountable enterprises in the CICA
Handbook, Part I?
A) The standards are similar to U.S. GAAP.
B) The standards are adaptations of IFRS that have been tailored to Canadian circumstances.
C) The standards are similar to ASPE.
D) The standards are identical, word for word, to IFRS.
Answer: D
Page Ref: 5
Learning Obj.: 1.2
Difficulty: Easy
Copyright © 2014 Pearson Canada Inc.
1-1
