TEST BANK For
n n
Modern Advanced Accounting In Canada
n n n n
10th Edition n
By Darrell Herauf, Chima Mbagwu
n n n n
Verified Chapter's 1 - 12 | Complete
n n n n n n
1-1
,TABLE OF CONTENTS
n n
CHAPTERn1nConceptualnandnCasenAnalysisnFrameworksnfornFinancialnReporting
CHAPTERn2nInvestmentsninnEquitynSecurities
CHAPTERn3nBusinessnCombinations
CHAPTERn4nConsolidationnofnNon-WhollynOwnednSubsidiaries
CHAPTERn5nConsolidationnSubsequentntonAcquisitionnDate
CHAPTERn6nIntercompanynInventorynandnLandnProfits
CHAPTERn7n(A)nIntercompanynProfitsninnDepreciablenAssetsn(B)nIntercompanynBondholdings
CHAPTERn8nConsolidatednCashnFlowsnandnChangesninnOwnership
CHAPTERn9nOthernConsolidationnReportingnIssues
CHAPTERn10nForeignnCurrencynTransactions
CHAPTERn11nTranslationnandnConsolidationnofnForeignnOperations
CHAPTERn12nAccountingnfornNot-for-ProfitnandnPublicnSectornOrganizations
1-2
, Chapter 01 n
nConceptual and Case Analysis Frameworks for Financial Reporting
n n n n n n n
MultiplenChoicenQuestions
1. nWhichnofnthenfollowingnwouldnNOTnbenanreasonntonobtainnangreaternunderstandingnofn
accountingnpracticesninnothernnations?
A. Financialnresultsnarendisclosedninndifferentncurrencies.
B. Onenneedsntonbenawarenofndifferingndisclosurenrequirementsnfromnnationntonnation,nasnthisni
mpactsnthenpreparationnofnfinancialnstatements.
C. Income-
smoothingnmaynhavenaffectednanforeignnsubsidiary'snresults;nsuchnsmoothingnpracticesnar
ennotnpermittedninnNorthnAmerica.
D. Departuresnfromnthenhistoricalncostnprinciplenmaynbenpossibleninnothernnations.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
2. Whichnofnthenfollowingnwouldnbenmostnaffectednbynfinancialnstatementsnbeingnpreparedn
underndifferentnaccountingnprinciples?
A. Reducedncomparability.
B. Reducednreliability.
C. Increasedncomplexity.
D. Inaccuratenassetnvaluations.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
1-3
, 3. ThenCPAnCanadanHandbookn-
nAccountingnisnthenhandbooknofnCanadiannaccountingnstandards.nWhyndoncompaniesninnCan
adanensurenthatntheirnfinancialnreportingnisnconsistentnwithnCanadiannGAAP?
A. Theirnbanknrequiresnthemntondonso.
B. Theirnauditorsnrequirenthemnton donso.
C. ReportingnundernthenCPAnCanadanHandbookn-
nAccountingnisnrequirednbynpublicncompanies'nboardsnofndirectors.
D. CompliancenwithnthenCPAnCanadanHandbookn-
nAccountingnpronouncementsnisnusuallynrequirednbynmanynlegalnstatutes.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
4. WhichndecisionnhasnCanadanmadenwithnrespectntonfinancialnreportingnfornprivatene
nterprises?
A. TonadoptnthenIFRSnstandardsnfornsmallnandnmedium-sizednenterprises.
B. Tonretainnthencurrentnstandards.
C. TonlookntonUSnGAAPnfornstandards.
D. Tondevelopnandnmaintainnitsnownnstandardsnfornprivatenenterprises.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
02nDescribenhownaccountingnstandardsninnCanadanarentailoredntondifferentntypesnofnorganizations.n Topic:n01-
05nGAAPnfornPrivatenEnterprises
5. Startingninn2011,nwhatn isnthendefinitionnofnanprivatenenterprisen(PE)nundernCanadiannGAAP?
A. Ancorporationnthatnhasnnonpublicnshareholders.
B. Ancorporationnthatnhasnlessnthann500nshareholdersnandnisnnotnlistednonnanstocknexchange.
C. Ancorporationnwhichnisnnotnprofitnoriented.
D. Anprofitnorientednenterprisenthatnhasnnonenofnitsnissuednandnoutstandingnfinancialninstrum
entsntradedninnanpublicnmarketnandndoesnnotnholdnassetsninnanfiduciaryncapacitynfornanbroadngr
oupnofnoutsidersnasnonenofnitsnprimarynbusinesses.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
02nDescribenhownaccountingnstandardsninnCanadanarentailoredntondifferentntypesnofnorganizations.n Topic:n01-
05nGAAPnfornPrivatenEnterprises
1-4
n n
Modern Advanced Accounting In Canada
n n n n
10th Edition n
By Darrell Herauf, Chima Mbagwu
n n n n
Verified Chapter's 1 - 12 | Complete
n n n n n n
1-1
,TABLE OF CONTENTS
n n
CHAPTERn1nConceptualnandnCasenAnalysisnFrameworksnfornFinancialnReporting
CHAPTERn2nInvestmentsninnEquitynSecurities
CHAPTERn3nBusinessnCombinations
CHAPTERn4nConsolidationnofnNon-WhollynOwnednSubsidiaries
CHAPTERn5nConsolidationnSubsequentntonAcquisitionnDate
CHAPTERn6nIntercompanynInventorynandnLandnProfits
CHAPTERn7n(A)nIntercompanynProfitsninnDepreciablenAssetsn(B)nIntercompanynBondholdings
CHAPTERn8nConsolidatednCashnFlowsnandnChangesninnOwnership
CHAPTERn9nOthernConsolidationnReportingnIssues
CHAPTERn10nForeignnCurrencynTransactions
CHAPTERn11nTranslationnandnConsolidationnofnForeignnOperations
CHAPTERn12nAccountingnfornNot-for-ProfitnandnPublicnSectornOrganizations
1-2
, Chapter 01 n
nConceptual and Case Analysis Frameworks for Financial Reporting
n n n n n n n
MultiplenChoicenQuestions
1. nWhichnofnthenfollowingnwouldnNOTnbenanreasonntonobtainnangreaternunderstandingnofn
accountingnpracticesninnothernnations?
A. Financialnresultsnarendisclosedninndifferentncurrencies.
B. Onenneedsntonbenawarenofndifferingndisclosurenrequirementsnfromnnationntonnation,nasnthisni
mpactsnthenpreparationnofnfinancialnstatements.
C. Income-
smoothingnmaynhavenaffectednanforeignnsubsidiary'snresults;nsuchnsmoothingnpracticesnar
ennotnpermittedninnNorthnAmerica.
D. Departuresnfromnthenhistoricalncostnprinciplenmaynbenpossibleninnothernnations.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
2. Whichnofnthenfollowingnwouldnbenmostnaffectednbynfinancialnstatementsnbeingnpreparedn
underndifferentnaccountingnprinciples?
A. Reducedncomparability.
B. Reducednreliability.
C. Increasedncomplexity.
D. Inaccuratenassetnvaluations.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
1-3
, 3. ThenCPAnCanadanHandbookn-
nAccountingnisnthenhandbooknofnCanadiannaccountingnstandards.nWhyndoncompaniesninnCan
adanensurenthatntheirnfinancialnreportingnisnconsistentnwithnCanadiannGAAP?
A. Theirnbanknrequiresnthemntondonso.
B. Theirnauditorsnrequirenthemnton donso.
C. ReportingnundernthenCPAnCanadanHandbookn-
nAccountingnisnrequirednbynpublicncompanies'nboardsnofndirectors.
D. CompliancenwithnthenCPAnCanadanHandbookn-
nAccountingnpronouncementsnisnusuallynrequirednbynmanynlegalnstatutes.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
01nDescribenandnapplynthenconceptualnframeworknfornfinancialnreporting.n Topic:n01-
01nThenConceptualnFrameworknfornFinancialnReporting
4. WhichndecisionnhasnCanadanmadenwithnrespectntonfinancialnreportingnfornprivatene
nterprises?
A. TonadoptnthenIFRSnstandardsnfornsmallnandnmedium-sizednenterprises.
B. Tonretainnthencurrentnstandards.
C. TonlookntonUSnGAAPnfornstandards.
D. Tondevelopnandnmaintainnitsnownnstandardsnfornprivatenenterprises.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
02nDescribenhownaccountingnstandardsninnCanadanarentailoredntondifferentntypesnofnorganizations.n Topic:n01-
05nGAAPnfornPrivatenEnterprises
5. Startingninn2011,nwhatn isnthendefinitionnofnanprivatenenterprisen(PE)nundernCanadiannGAAP?
A. Ancorporationnthatnhasnnonpublicnshareholders.
B. Ancorporationnthatnhasnlessnthann500nshareholdersnandnisnnotnlistednonnanstocknexchange.
C. Ancorporationnwhichnisnnotnprofitnoriented.
D. Anprofitnorientednenterprisenthatnhasnnonenofnitsnissuednandnoutstandingnfinancialninstrum
entsntradedninnanpublicnmarketnandndoesnnotnholdnassetsninnanfiduciaryncapacitynfornanbroadngr
oupnofnoutsidersnasnonenofnitsnprimarynbusinesses.
Accessibility:nKeyboardnNavigationn Bloo
ms:nRemember
Difficulty:nEasy
LearningnObjective:n01-
02nDescribenhownaccountingnstandardsninnCanadanarentailoredntondifferentntypesnofnorganizations.n Topic:n01-
05nGAAPnfornPrivatenEnterprises
1-4
