Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
Test Bank for Intermediate Accounting (Volume 1) 8th Edition
By Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-
Dick, Kayla Tomulka, Romi-Lee Sevel All Chapter 1-11
1 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
Chapter 1-11 Answers are at the end
of Each Chapter
Chapter 1
Student name:
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
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
U.S has adopted IFRS completely.
⊚ true
⊚ false
5) A disclosed basis of accounting (DBA) is acceptable if a company's financial statements are
prepared solely for internal use.
⊚ true
⊚ false
2 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
6) Only publicly traded companies in Canada are required to adopt IFRS.
⊚ true
⊚ false
7) Earnings quality is said to be high when most of a company's earnings are the result of its
continuing operations.
⊚ true
⊚ false
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
9) In Canada, income for tax and accounting purposes may be different.
⊚ true
⊚ false
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
12) A company's functional currency is always the currency in which the financial statements are
presented.
⊚ true
⊚ false
3 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
13) It is acceptable for publicly traded Canadian companies to report under US GAAP.
⊚ true
⊚ false
14) In Canada, almost all equity financing for both public and private companies is done through
private placements.
⊚ true
⊚ false
15) IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).
⊚ true
⊚ false
16) Privately held for-profit enterprises with a fiduciary responsibility have a choice between IFRS
and ASPE.
⊚ true
⊚ false
17) Mutual fund companies, which may be privately held, are deemed to have a fiduciary
responsibility and must therefore comply with IFRS.
⊚ true
⊚ false
18) Canadian companies must always present their financial results in Canadian dollars.
⊚ true
⊚ false
19) Canadian corporations are prohibited from using U.S. GAAP.
⊚ true
⊚ false
4 of 795 9/15/2024, 4:36
Test Bank for Intermediate Accounting (Volume 1) 8th Edition
By Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-
Dick, Kayla Tomulka, Romi-Lee Sevel All Chapter 1-11
1 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
Chapter 1-11 Answers are at the end
of Each Chapter
Chapter 1
Student name:
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
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
U.S has adopted IFRS completely.
⊚ true
⊚ false
5) A disclosed basis of accounting (DBA) is acceptable if a company's financial statements are
prepared solely for internal use.
⊚ true
⊚ false
2 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
6) Only publicly traded companies in Canada are required to adopt IFRS.
⊚ true
⊚ false
7) Earnings quality is said to be high when most of a company's earnings are the result of its
continuing operations.
⊚ true
⊚ false
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
9) In Canada, income for tax and accounting purposes may be different.
⊚ true
⊚ false
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
12) A company's functional currency is always the currency in which the financial statements are
presented.
⊚ true
⊚ false
3 of 795 9/15/2024, 4:36
,Test bank for intermediate accounting volume 1 8th edition by thomas h... file:///C:/Users/HP/Downloads/Test%20bank%20for%20intermediate
13) It is acceptable for publicly traded Canadian companies to report under US GAAP.
⊚ true
⊚ false
14) In Canada, almost all equity financing for both public and private companies is done through
private placements.
⊚ true
⊚ false
15) IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).
⊚ true
⊚ false
16) Privately held for-profit enterprises with a fiduciary responsibility have a choice between IFRS
and ASPE.
⊚ true
⊚ false
17) Mutual fund companies, which may be privately held, are deemed to have a fiduciary
responsibility and must therefore comply with IFRS.
⊚ true
⊚ false
18) Canadian companies must always present their financial results in Canadian dollars.
⊚ true
⊚ false
19) Canadian corporations are prohibited from using U.S. GAAP.
⊚ true
⊚ false
4 of 795 9/15/2024, 4:36
