14th Canadian Edition By Kieso, Weygandt,
Warfield, Wiley, Wiecek, McConomy eText
ISBN:9781394277216
Original Intermediate Accounting Practice Bank • Page 1
,Contents
1. The Canadian Financial Reporting Environment
2. Conceptual Framework Underlying Financial Reporting
3. Data, Decisions, and Measurement
4. Reporting Financial Performance
Original Intermediate Accounting Practice Bank • Page 2
,5. Financial Position and Cash Flows
6. Revenue Recognition
7. Cash and Receivables
8. Inventory
9. Investments
10. Property, Plant, and Equipment: Accounting Model Basics
11. Depreciation, Impairment, and Disposition
12. Intangible Assets and Goodwill
Original Intermediate Accounting Practice Bank • Page 3
, Chapter 1: The Canadian Financial Reporting Environment
1. The primary objective of general-purpose financial reporting is to provide information useful to:
A. Existing and potential investors, lenders, and other creditors
B. Only tax authorities
C. Only management
D. Only employees
Correct answer: A
Explanation: General-purpose financial statements are designed mainly to help existing and potential capital providers
make resource-allocation decisions.
2. Which body issues International Financial Reporting Standards (IFRS)?
A. IASB
B. CPA Canada
C. CRA
D. Provincial courts
Correct answer: A
Explanation: The International Accounting Standards Board (IASB) issues IFRS Standards.
3. A public company in Canada will generally prepare financial statements using:
A. IFRS Accounting Standards
B. Cash-basis accounting only
C. Tax rules only
D. Private-enterprise standards only
Correct answer: A
Explanation: Canadian publicly accountable enterprises generally apply IFRS Accounting Standards.
4. The primary objective of general-purpose financial reporting is to provide information useful to:
A. Existing and potential investors, lenders, and other creditors
B. Only tax authorities
C. Only management
D. Only employees
Correct answer: A
Explanation: General-purpose financial statements are designed mainly to help existing and potential capital providers
make resource-allocation decisions.
5. Which body issues International Financial Reporting Standards (IFRS)?
A. IASB
B. CPA Canada
C. CRA
D. Provincial courts
Correct answer: A
Explanation: The International Accounting Standards Board (IASB) issues IFRS Standards.
6. A public company in Canada will ordinarily prepare financial statements using:
Original Intermediate Accounting Practice Bank • Page 4