TEST BANK For Modern Advanced Accounting In Canada 10th Edition By Darrell Herauf, Chima Mbagwu Verified Chapter's 1 - 12 | Complete

TEST BANK For
Modern Advanced Accounting In Canada
10th Edition
By Darrell Herauf, Chima Mbagwu
Verified Chapter's 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 of Non-Wholly Owned Subsidiaries


CHAPTER 5 Consolidation Subsequent to Acquisition Date


CHAPTER 6 Intercompany Inventory and 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 for Not-for-Profit and Public Sector Organizations




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, Chapter 01
Conceptual and Case Analysis Frameworks for Financial Reporting

Multiple Choice Questions


1. Which of the following would NOT be a reason to obtain a greater understanding of
accounting practices in other nations?
A. Financial results are disclosed in different currencies.
B. One needs to be aware of differing disclosure requirements from nation to nation, as this
impacts the preparation of financial statements.
C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing
practices are not permitted in North America.
D. Departures from the historical cost principle may be possible in other nations.


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



2. Which of the following would be most affected by financial statements being prepared
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under different accounting principles?
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A. Reduced comparability.
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B. Reduced reliability.
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C. Increased complexity. ry


D. Inaccurate asset valuations.ry ry




Accessibility:ryKeyboardryNavigationr y Blo
oms:ryRemember
Difficulty:ryEasy
LearningryObjective:ry01-
01ryDescriberyandryapplyrytheryconceptualryframeworkryforryfinancialryreporting.r y Topic:ry01-
01ryTheryConceptualryFrameworkryforryFinancialryReporting




1-3

, 3. The CPA Canada Handbook -
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Accounting is the handbook of Canadian accounting standards. Why do companies in C
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anada ensure that their financial reporting is consistent with Canadian GAAP?
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A. Their bank requires them to do so.
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B. Their auditors require them to do so.
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C. Reporting under the CPA Canada Handbook -
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Accounting is required by public companies' boards of directors.
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D. Compliance with the CPA Canada Handbook - ry ry ry ry ry ry


Accounting pronouncements is usually required by many legal statutes.
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Accessibility:ryKeyboardryNavigationr y Blo
oms:ryRemember
Difficulty:ryEasy
LearningryObjective:ry01-
01ryDescriberyandryapplyrytheryconceptualryframeworkryforryfinancialryreporting.r y Topic:ry01-
01ryTheryConceptualryFrameworkryforryFinancialryReporting



4. Which decision has Canada made with respect to financial reporting for private
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enterprises?
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A. To adopt the IFRS standards for small and medium-sized enterprises.
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B. To retain the current standards.
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C. To look to US GAAP for standards.
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D. To develop and maintain its own standards for private enterprises.
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Accessibility:ryKeyboardryNavigationr y Blo
oms:ryRemember
Difficulty:ryEasy
LearningryObjective:ry01-
02ryDescriberyhowryaccountingrystandardsryinryCanadaryarerytailoredrytorydifferentrytypesryofryorganizations.r y Topic:ry01-
05ryGAAPryforryPrivateryEnterprises

5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
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A. A corporation that has no public shareholders.
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B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
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C. A corporation which is not profit oriented.
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D. A profit oriented enterprise that has none of its issued and outstanding financial instru
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ments traded in a public market and does not hold assets in a fiduciary capacity for a broa
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d group of outsiders as one of its primary businesses.
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Accessibility:ryKeyboardryNavigationr y Blo
oms:ryRemember
Difficulty:ryEasy
LearningryObjective:ry01-
02ryDescriberyhowryaccountingrystandardsryinryCanadaryarerytailoredrytorydifferentrytypesryofryorganizations.r y Topic:ry01-
05ryGAAPryforryPrivateryEnterprises




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