Test Bank for Intermediate Accounting ( Volume 1) 8th Edition Thomas H. Beechy| All Chapters | Latest Edition

Test Bank For
Intermediate Accounting Volume 1 8e Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell,
Ingrid Mcleod-Dick, Kayla Tomulka, Romi-Lee Sevel
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

,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

,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

, 20) A Company's Reporting Currency Is The Currency In Which It Conducts Most Of Its Business.
⊚ True
⊚ False



21) The Disclosed Basis Of Accounting (Dba) Refers To The Use Of Non-Gaap Accounting
Policies By Private Companies.
⊚ True
⊚ False



22) A Company's Presentation Currency Can Differ From Its Functional Currency.
⊚ True
⊚ False



23) The Accounting Standards For Private Enterprises (Aspe) Are Essentially A Scaled-Down
Version Of The Cpa Handbook, Which Is Available To All Small And Medium Sized
Enterprises With No Fiduciary Responsibility.
⊚ True
⊚ False



24) Different Stakeholders Have Different Reporting Requirements With Respect To General-
Purpose Financial Statements. A Lender Will Be More Interested In A Company's Cash
Flows While An Investor Will Likely Be More Interested In A Company's Earnings.
⊚ True
⊚ False



25) The Influence Of Tax Rules When Selecting Appropriate Accounting Treatment For A
Transaction Is Particularly Strong With Public Companies.
⊚ True
⊚ False