Testbank For Modern Advanced
Accounting In Canada 10thedition By
Darrell Herauf,Chima Mbagwu
Verified Chapter 1-12|Complete
1-1
,TABLE OF CONTENTS
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
CHAPTER 2 Investments in Equity Securities
CHAPTER 3 Business Combinations
CHAPTER 4 Consolidation ofANon-Wholly Owned Subsidiaries
CHAPTER 5 Consolidation Subsequent to Acquisition Date
CHAPTER 6 Intercompany InventoryAand Land Profits
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
CHAPTER 9 Other Consolidation Reporting Issues
CHAPTER 10 Foreign Currency Transactions
CHAPTER 11 Translation and Consolidation of Foreign Operations
CHAPTER 12 Accounting forANot-for-ProfitAand Public Sector Organizations
1-2
, Chapter 01
Conceptual and Case Analysis Frameworks for Financial Reportin
g
Multiple Choice Questions
1. Which ofAthe following would NOT be a reason to obtainAa greater understanding
ofAaccounting practices in otherAnations?
A. Financial results are disclosed inAdifferent currencies.
B. One needs to be aware ofAdiffering disclosure requirements from nation to nation, as th
is impacts the preparation ofAfinancial statements.
C. Income-
smoothing mayAhave affectedAa foreign subsidiary's results; suchAsmoothing practices
are not permitted in NorthAAmerica.
D. Departures from the historical cost principle may be possible inAotherAnations.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual frameworkAforAfinancialAreporting. Topic: 01-
01 The Conceptual Framework Afor AFinancial Reporting
2. Which ofAthe following would Abe most affectedAby financial statements being prepare
d underAdifferentAaccounting principles?
A. ReducedAcomparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual framework AforAfinancialAreporting. Topic: 01-
01 The Conceptual FrameworkAfor AFinancial Reporting
1-3
, 3. The CPA Canada HandbookA-
AccountingAis the handbook ofACanadian accounting standards. WhyAdo companies in
Canada ensure that theirAfinancial reporting is consistent with Canadian GAAP?
A. Their bank requires them to do so.
B. Their auditors require them to do so.
C. Reporting under the CPA Canada HandbookA-
Accounting is required byApublic companies' boards ofAdirectors.
D. Compliance with the CPA Canada HandbookA-
AccountingApronouncements is usually required by many legal statutes.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual framework AforAfinancial reporting. Topic: 01-
01 The Conceptual Framework Afor AFinancial Reporting
4. Which decision has Canada made with respect to financial reporting for privat
e enterprises?
A. To adoptAthe IFRS standards for small and medium-sized enterprises.
B. To retain the currentAstandards.
C. To look to US GAAP forAstandards.
D. To develop and maintain its own standards for private enterprises.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
02 DescribeAhow accounting standardsAin Canada areAtailored to differentAtypes ofAorganizations. Topic: 01-
05 GAAPAforAPrivate Enterprises
5. Starting in 2011, what is the definition ofAa private enterprise (PE) under Canadian GAAP?
A. A corporation thatAhas no public shareholders.
B. AAcorporation that has less than 500 shareholders and is not listedAon a stockAexchange.
C. AAcorporation whichAis not profit oriented.
D. A profit Aoriented enterprise that has none ofAits issuedAandAoutstanding financial instr
uments traded inAa public marketAandAdoes not holdAassets inAa fiduciary capacity for aAbr
oad group ofAoutsiders as one ofAits primary businesses.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
02 DescribeAhow accounting standardsAin Canada areAtailored to different types ofAorganizations. Topic: 01-
05 GAAPAforAPrivate Enterprises
1-4
Accounting In Canada 10thedition By
Darrell Herauf,Chima Mbagwu
Verified Chapter 1-12|Complete
1-1
,TABLE OF CONTENTS
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
CHAPTER 2 Investments in Equity Securities
CHAPTER 3 Business Combinations
CHAPTER 4 Consolidation ofANon-Wholly Owned Subsidiaries
CHAPTER 5 Consolidation Subsequent to Acquisition Date
CHAPTER 6 Intercompany InventoryAand Land Profits
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
CHAPTER 9 Other Consolidation Reporting Issues
CHAPTER 10 Foreign Currency Transactions
CHAPTER 11 Translation and Consolidation of Foreign Operations
CHAPTER 12 Accounting forANot-for-ProfitAand Public Sector Organizations
1-2
, Chapter 01
Conceptual and Case Analysis Frameworks for Financial Reportin
g
Multiple Choice Questions
1. Which ofAthe following would NOT be a reason to obtainAa greater understanding
ofAaccounting practices in otherAnations?
A. Financial results are disclosed inAdifferent currencies.
B. One needs to be aware ofAdiffering disclosure requirements from nation to nation, as th
is impacts the preparation ofAfinancial statements.
C. Income-
smoothing mayAhave affectedAa foreign subsidiary's results; suchAsmoothing practices
are not permitted in NorthAAmerica.
D. Departures from the historical cost principle may be possible inAotherAnations.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual frameworkAforAfinancialAreporting. Topic: 01-
01 The Conceptual Framework Afor AFinancial Reporting
2. Which ofAthe following would Abe most affectedAby financial statements being prepare
d underAdifferentAaccounting principles?
A. ReducedAcomparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual framework AforAfinancialAreporting. Topic: 01-
01 The Conceptual FrameworkAfor AFinancial Reporting
1-3
, 3. The CPA Canada HandbookA-
AccountingAis the handbook ofACanadian accounting standards. WhyAdo companies in
Canada ensure that theirAfinancial reporting is consistent with Canadian GAAP?
A. Their bank requires them to do so.
B. Their auditors require them to do so.
C. Reporting under the CPA Canada HandbookA-
Accounting is required byApublic companies' boards ofAdirectors.
D. Compliance with the CPA Canada HandbookA-
AccountingApronouncements is usually required by many legal statutes.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
01 DescribeAandAapply the conceptual framework AforAfinancial reporting. Topic: 01-
01 The Conceptual Framework Afor AFinancial Reporting
4. Which decision has Canada made with respect to financial reporting for privat
e enterprises?
A. To adoptAthe IFRS standards for small and medium-sized enterprises.
B. To retain the currentAstandards.
C. To look to US GAAP forAstandards.
D. To develop and maintain its own standards for private enterprises.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
02 DescribeAhow accounting standardsAin Canada areAtailored to differentAtypes ofAorganizations. Topic: 01-
05 GAAPAforAPrivate Enterprises
5. Starting in 2011, what is the definition ofAa private enterprise (PE) under Canadian GAAP?
A. A corporation thatAhas no public shareholders.
B. AAcorporation that has less than 500 shareholders and is not listedAon a stockAexchange.
C. AAcorporation whichAis not profit oriented.
D. A profit Aoriented enterprise that has none ofAits issuedAandAoutstanding financial instr
uments traded inAa public marketAandAdoes not holdAassets inAa fiduciary capacity for aAbr
oad group ofAoutsiders as one ofAits primary businesses.
Accessibility: Keyboard Navigation Bloo
ms: Remember
Difficulty: Easy
Learning Objective: 01-
02 DescribeAhow accounting standardsAin Canada areAtailored to different types ofAorganizations. Topic: 01-
05 GAAPAforAPrivate Enterprises
1-4
