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
1-2
, 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
under different accounting principles?
A. Reduced comparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
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
1-3
, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
standards. Why do companies in Canada ensure that their financial reporting is consistent
with Canadian GAAP?
A. Their bank requires them to do so.
B. Their auditors require them to do so.
C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
boards of directors.
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
required by many legal statutes.
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
4. Which bdecision bhas bCanada bmade bwith brespect bto bfinancial breporting bfor
bprivate benterprises?
A. To badopt bthe bIFRS bstandards bfor bsmall band bmedium-sized benterprises.
B. To bretain bthe bcurrent bstandards.
C. To blook bto bUS bGAAP bfor bstandards.
D. To bdevelop band bmaintain bits bown bstandards bfor bprivate benterprises.
Accessibility: bKeyboard bNavigation
b Blooms: bRemember
Difficulty: bEasy
Learning bObjective: b01-02 bDescribe bhow baccounting bstandards bin bCanada bare btailored bto bdifferent btypes
bof borganizations. b Topic: b01-05 bGAAP bfor bPrivate bEnterprises
5. Starting bin b2011, bwhat bis bthe bdefinition bof ba bprivate benterprise b(PE) bunder bCanadian bGAAP?
A. A bcorporation bthat bhas bno bpublic bshareholders.
B. A bcorporation bthat bhas bless bthan b500 bshareholders band bis bnot blisted bon ba bstock bexchange.
C. A bcorporation bwhich bis bnot bprofit boriented.
D. A bprofit boriented benterprise bthat bhas bnone bof bits bissued band boutstanding bfinancial
binstruments btraded bin ba bpublic bmarket band bdoes bnot bhold bassets bin ba bfiduciary
bcapacity bfor ba bbroad bgroup bof boutsiders bas bone bof bits bprimary bbusinesses.
Accessibility: bKeyboard bNavigation
b Blooms: bRemember
Difficulty: bEasy
Learning bObjective: b01-02 bDescribe bhow baccounting bstandards bin bCanada bare btailored bto bdifferent btypes
bof borganizations. b Topic: b01-05 bGAAP bfor bPrivate bEnterprises
1-4
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
1-2
, 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
under different accounting principles?
A. Reduced comparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
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
1-3
, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
standards. Why do companies in Canada ensure that their financial reporting is consistent
with Canadian GAAP?
A. Their bank requires them to do so.
B. Their auditors require them to do so.
C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
boards of directors.
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
required by many legal statutes.
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
4. Which bdecision bhas bCanada bmade bwith brespect bto bfinancial breporting bfor
bprivate benterprises?
A. To badopt bthe bIFRS bstandards bfor bsmall band bmedium-sized benterprises.
B. To bretain bthe bcurrent bstandards.
C. To blook bto bUS bGAAP bfor bstandards.
D. To bdevelop band bmaintain bits bown bstandards bfor bprivate benterprises.
Accessibility: bKeyboard bNavigation
b Blooms: bRemember
Difficulty: bEasy
Learning bObjective: b01-02 bDescribe bhow baccounting bstandards bin bCanada bare btailored bto bdifferent btypes
bof borganizations. b Topic: b01-05 bGAAP bfor bPrivate bEnterprises
5. Starting bin b2011, bwhat bis bthe bdefinition bof ba bprivate benterprise b(PE) bunder bCanadian bGAAP?
A. A bcorporation bthat bhas bno bpublic bshareholders.
B. A bcorporation bthat bhas bless bthan b500 bshareholders band bis bnot blisted bon ba bstock bexchange.
C. A bcorporation bwhich bis bnot bprofit boriented.
D. A bprofit boriented benterprise bthat bhas bnone bof bits bissued band boutstanding bfinancial
binstruments btraded bin ba bpublic bmarket band bdoes bnot bhold bassets bin ba bfiduciary
bcapacity bfor ba bbroad bgroup bof boutsiders bas bone bof bits bprimary bbusinesses.
Accessibility: bKeyboard bNavigation
b Blooms: bRemember
Difficulty: bEasy
Learning bObjective: b01-02 bDescribe bhow baccounting bstandards bin bCanada bare btailored bto bdifferent btypes
bof borganizations. b Topic: b01-05 bGAAP bfor bPrivate bEnterprises
1-4
