TEST BANK
G
O
LD
TU
TO
R
TEST BANK
,Spiceland: Intermediate Accounting Volume 1- 8th Edition
Test Bank
Chapter 1-11 Answers are at the end of Each Chapter
Chapter 1
G
Student name:
1) The main purpose of financial accounting is to communicate useful financial information to
O
decision-makers both inside and outside of the business organization.
⊚ true
⊚ false
LD
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
TU
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
TO
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
R
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
G
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
O
9) In Canada, income for tax and accounting purposes may be different.
LD
⊚ true
⊚ false
TU
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
TO
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
R
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
G
15) IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).
⊚ true
⊚ false
O
16) Privately held for-profit enterprises with a fiduciary responsibility have a choice between
LD
IFRS and ASPE.
⊚ true
⊚ false
TU
17) Mutual fund companies, which may be privately held, are deemed to have a fiduciary
responsibility and must therefore comply with IFRS.
⊚ true
⊚ false
TO
18) Canadian companies must always present their financial results in Canadian dollars.
⊚ true
⊚ false
R
19) Canadian corporations are prohibited from using U.S. GAAP.
⊚ true
⊚ false
G
O
LD
TU
TO
R
TEST BANK
,Spiceland: Intermediate Accounting Volume 1- 8th Edition
Test Bank
Chapter 1-11 Answers are at the end of Each Chapter
Chapter 1
G
Student name:
1) The main purpose of financial accounting is to communicate useful financial information to
O
decision-makers both inside and outside of the business organization.
⊚ true
⊚ false
LD
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
TU
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
TO
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
R
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
G
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
O
9) In Canada, income for tax and accounting purposes may be different.
LD
⊚ true
⊚ false
TU
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
TO
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
R
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
G
15) IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).
⊚ true
⊚ false
O
16) Privately held for-profit enterprises with a fiduciary responsibility have a choice between
LD
IFRS and ASPE.
⊚ true
⊚ false
TU
17) Mutual fund companies, which may be privately held, are deemed to have a fiduciary
responsibility and must therefore comply with IFRS.
⊚ true
⊚ false
TO
18) Canadian companies must always present their financial results in Canadian dollars.
⊚ true
⊚ false
R
19) Canadian corporations are prohibited from using U.S. GAAP.
⊚ true
⊚ false
