FULL TEST BANK FOR
Modern Advanced Accounting In Canada 9th Edition Hilton Murray,
Herauf Darrell
Chapter 01
Conceptual and Case Analysis Frameworks for Financial Reporting
N
Multiple Choice Questions
U
1. Which Test of theBank for Modern
following would NOT Advanced Accounting
be a reason to obtainina Canada, 9th Edition by
greater understanding of Edward A. Hilton,
accounting G.practices
R. Murray, and nations?
in other D. E. Herauf: All Chapters
A. Financial results are disclosed inaccounting
Elevate your advanced acumen with this comprehensive test bank for Modern
different currencies.
R
B. One needs Advanced Accounting
to be aware of differingin Canada,
disclosure 9th Edition—the
requirements fromessential
nation tocompanion for CPA and
nation, as this
impacts the university prep. Spanning all 15+ chapters, it delivers over 1,200 meticulously designed
preparation of financial statements.
questions: multiple-choice,
C. Income-smoothing may have affectedcomputational exercises,
a foreign subsidiary's case
results; analyses,
such smoothing and conceptual
SE
practices essays exploring Canadian IFRS convergence, business combinations, consolidations,
are not permitted in North America.
D. Departures foreignfromcurrency translations,
the historical pensions/post-retirement
cost principle may be possible in other benefits,
nations.intercorporate
investments, not-for-profit entities, and financial statement presentations, all refreshed with
2026 CPA Canada updates on sustainability reporting, digital assets, and ESG
Accessibility: disclosures.
Keyboard Navigation
Each
Blooms: Remember question features verified answers, step-by-step rationales grounded in CPA
D
Difficulty: Easy
Handbook
Learning Objective: standards,
01-01 Describe and apply the and remediation
conceptual for ethical
framework for financial reasoning and problem-solving. With
reporting.
adaptive quizzes, financial model simulators, and performance analytics, this resource
Topic: 01-01 The Conceptual Framework for Financial Reporting
empowers undergrads, grad students, and educators for CFE exams or advanced
O
2. Which courses. From equity
of the following would be method to complex
most affected mergers,
by financial unlock Hilton,
statements Murray, and Herauf's
being prepared
under differentprecision—ace
accounting assessments,
principles? master regulatory nuances, and propel your accounting
career
A. Reduced comparability.toward CPA excellence!
C
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
Topic: 01-01 The Conceptual Framework for Financial Reporting
1-1
,3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
standards. Why do companies in Canada ensure that their financial 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 Handbook - Accounting is required by public companies'
boards of directors.
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
N
required by many legal statutes.
U
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
R
Topic: 01-01 The Conceptual Framework for Financial Reporting
4. Which decision has Canada made with respect to financial reporting for private
SE
enterprises?
A. To adopt the IFRS standards for small and medium-sized enterprises.
B. To retain the current standards.
C. To look to US GAAP for standards.
D. To develop and maintain its own standards for private enterprises.
D
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
O
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
C
A. A corporation that has no public shareholders.
B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
C. A corporation which is not profit oriented.
D. A profit oriented enterprise that has none of its issued and outstanding financial
S
instruments traded in a public market and does not hold assets in a fiduciary capacity for a
broad group of outsiders as one of its primary businesses.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
1-2
,6. Which enterprises must report under IFRS in Canada?
A. All corporations, government agencies and private companies.
B. Public companies and private companies whose shareholders' equity is in excess of
$500,000,000 at any particular year end.
C. Public companies, private companies and not-for-profit organizations.
D. Publicly accountable enterprises.
Accessibility: Keyboard Navigation
Blooms: Remember
N
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
U
7. What approach did Canada first decide to take with respect to convergence with IFRS?
A. Harmonization of CPA Canada Handbook with IFRS.
B. Substituting IFRS for Canadian GAAP when approved by the IASB.
R
C. Adopting some but not necessarily all IFRSs by reviewing them on a case by case basis.
D. Reviewing them with all publically accountable entities to see which ones would be
acceptable.
SE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
D
8. What choice(s) do private enterprises have in their financial reporting in Canada?
A. They have no choice at all; they will need to report under IFRS.
O
B. They may elect to continue with differential reporting.
C. They may adopt accounting principles that are appropriate to the circumstances.
D. They may elect to report under either IFRS or ASPE but once adopted, must use all the
C
standards.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
1-3
, 9. For which of the following types of organizations does the CPA Canada Handbook not
provide specific accounting standards?
A. Publicly accountable enterprises.
B. Private enterprises.
C. Not-for-profit organizations.
D. Proprietorships.
Accessibility: Keyboard Navigation
Blooms: Remember
N
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Learning Objective: 01-03 Identify some of the differences between IFRS and ASPE.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
Topic: 01-05 GAAP for Private Enterprises
U
Topic: 01-06 GAAP for Not-for-Profit Organizations
Topic: 01-07 GAPP for Government and Other Government Organizations
R
10. Which of the following is NOT a reason why a Canadian private company would elect to
report under IFRS?
A. The company is planning to go public in the near future.
SE
B. The company seeks comparability with public companies of a similar size.
C. It is likely to be less expensive than reporting under ASPE.
D. The company is a subsidiary of a Canadian public company.
Accessibility: Keyboard Navigation
D
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
O
11. The current ratio measures:
A. liquidity.
B. solvency.
C
C. profitability of assets.
D. profitability of owners' investment.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-04 Analyze and interpret financial statements to assess the impact of different accounting methods on key financial
statements ratios.
Topic: 01-08 Analysis and Interpretation of Financial Statements
1-4
Modern Advanced Accounting In Canada 9th Edition Hilton Murray,
Herauf Darrell
Chapter 01
Conceptual and Case Analysis Frameworks for Financial Reporting
N
Multiple Choice Questions
U
1. Which Test of theBank for Modern
following would NOT Advanced Accounting
be a reason to obtainina Canada, 9th Edition by
greater understanding of Edward A. Hilton,
accounting G.practices
R. Murray, and nations?
in other D. E. Herauf: All Chapters
A. Financial results are disclosed inaccounting
Elevate your advanced acumen with this comprehensive test bank for Modern
different currencies.
R
B. One needs Advanced Accounting
to be aware of differingin Canada,
disclosure 9th Edition—the
requirements fromessential
nation tocompanion for CPA and
nation, as this
impacts the university prep. Spanning all 15+ chapters, it delivers over 1,200 meticulously designed
preparation of financial statements.
questions: multiple-choice,
C. Income-smoothing may have affectedcomputational exercises,
a foreign subsidiary's case
results; analyses,
such smoothing and conceptual
SE
practices essays exploring Canadian IFRS convergence, business combinations, consolidations,
are not permitted in North America.
D. Departures foreignfromcurrency translations,
the historical pensions/post-retirement
cost principle may be possible in other benefits,
nations.intercorporate
investments, not-for-profit entities, and financial statement presentations, all refreshed with
2026 CPA Canada updates on sustainability reporting, digital assets, and ESG
Accessibility: disclosures.
Keyboard Navigation
Each
Blooms: Remember question features verified answers, step-by-step rationales grounded in CPA
D
Difficulty: Easy
Handbook
Learning Objective: standards,
01-01 Describe and apply the and remediation
conceptual for ethical
framework for financial reasoning and problem-solving. With
reporting.
adaptive quizzes, financial model simulators, and performance analytics, this resource
Topic: 01-01 The Conceptual Framework for Financial Reporting
empowers undergrads, grad students, and educators for CFE exams or advanced
O
2. Which courses. From equity
of the following would be method to complex
most affected mergers,
by financial unlock Hilton,
statements Murray, and Herauf's
being prepared
under differentprecision—ace
accounting assessments,
principles? master regulatory nuances, and propel your accounting
career
A. Reduced comparability.toward CPA excellence!
C
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
Topic: 01-01 The Conceptual Framework for Financial Reporting
1-1
,3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
standards. Why do companies in Canada ensure that their financial 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 Handbook - Accounting is required by public companies'
boards of directors.
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
N
required by many legal statutes.
U
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
R
Topic: 01-01 The Conceptual Framework for Financial Reporting
4. Which decision has Canada made with respect to financial reporting for private
SE
enterprises?
A. To adopt the IFRS standards for small and medium-sized enterprises.
B. To retain the current standards.
C. To look to US GAAP for standards.
D. To develop and maintain its own standards for private enterprises.
D
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
O
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
C
A. A corporation that has no public shareholders.
B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
C. A corporation which is not profit oriented.
D. A profit oriented enterprise that has none of its issued and outstanding financial
S
instruments traded in a public market and does not hold assets in a fiduciary capacity for a
broad group of outsiders as one of its primary businesses.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
1-2
,6. Which enterprises must report under IFRS in Canada?
A. All corporations, government agencies and private companies.
B. Public companies and private companies whose shareholders' equity is in excess of
$500,000,000 at any particular year end.
C. Public companies, private companies and not-for-profit organizations.
D. Publicly accountable enterprises.
Accessibility: Keyboard Navigation
Blooms: Remember
N
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
U
7. What approach did Canada first decide to take with respect to convergence with IFRS?
A. Harmonization of CPA Canada Handbook with IFRS.
B. Substituting IFRS for Canadian GAAP when approved by the IASB.
R
C. Adopting some but not necessarily all IFRSs by reviewing them on a case by case basis.
D. Reviewing them with all publically accountable entities to see which ones would be
acceptable.
SE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
D
8. What choice(s) do private enterprises have in their financial reporting in Canada?
A. They have no choice at all; they will need to report under IFRS.
O
B. They may elect to continue with differential reporting.
C. They may adopt accounting principles that are appropriate to the circumstances.
D. They may elect to report under either IFRS or ASPE but once adopted, must use all the
C
standards.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
1-3
, 9. For which of the following types of organizations does the CPA Canada Handbook not
provide specific accounting standards?
A. Publicly accountable enterprises.
B. Private enterprises.
C. Not-for-profit organizations.
D. Proprietorships.
Accessibility: Keyboard Navigation
Blooms: Remember
N
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Learning Objective: 01-03 Identify some of the differences between IFRS and ASPE.
Topic: 01-04 GAAP for Publicly Accountable Enterprises
Topic: 01-05 GAAP for Private Enterprises
U
Topic: 01-06 GAAP for Not-for-Profit Organizations
Topic: 01-07 GAPP for Government and Other Government Organizations
R
10. Which of the following is NOT a reason why a Canadian private company would elect to
report under IFRS?
A. The company is planning to go public in the near future.
SE
B. The company seeks comparability with public companies of a similar size.
C. It is likely to be less expensive than reporting under ASPE.
D. The company is a subsidiary of a Canadian public company.
Accessibility: Keyboard Navigation
D
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
Topic: 01-05 GAAP for Private Enterprises
O
11. The current ratio measures:
A. liquidity.
B. solvency.
C
C. profitability of assets.
D. profitability of owners' investment.
S
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-04 Analyze and interpret financial statements to assess the impact of different accounting methods on key financial
statements ratios.
Topic: 01-08 Analysis and Interpretation of Financial Statements
1-4
