, CHAPTER 1 u
THE CANADIAN u
FINANCIAL REPORTING ENVIRONMENT
u u
MULTIPLE CHOICE—Conceptual
u
Answer No. Description
d 1. Accountingucharacteristics.
a 2. Natureuofufinancialuaccounting.
c 3. Definitionuofufinancialuaccounting.
a 4. Financialureportinguentity.
d 5. Efficientuuseuofuresources.
d 6. Capitaluallocationuprocess.
c 7. Assessingumanagementustewardship.
c 8. Objectivesuofufinancialureporting.
a 9. RoleuofuAcSB.
c 10. BodyuresponsibleuforusettinguGAAP.
b 11. Preparationuofubiaseduinformation.
d 12. Partiesuinstrumentaluinudevelopmentuofureportingustandards.
d 13. Stakeholdersuinutheufinancialureportinguenvironment..
a 14. “Dueuprocess”.
d 15. Causesuofusubprimeulendingucrisis.
d 16. Managementubias.
b 17. AdoptionuofuIFRS.
c 18. RoleuofuOSC.
d 19. DefinitionuofuGAAP.
b 20. Changingunatureuofutheueconomy.
d 21. Exerciseuofuprofessionalujudgement.
c 22. Majorufactorsuinutheureportinguenvironment.
a 23. Impactuofutechnologyuonufinancialureporting.
b 24. Natureuofutheu“BalanceduScorecard”.
a 25. Responsibilityuforufinancialustatements.
d 26. GAAPuforuprivateuenterprises.
d 27. Reportinguprinciples
b 28. SOX.
a 29 AcSB’sustandardusettinguprocess
TestuBank Chapteru1
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,1u-u2 TestuBankuforuIntermediateuAccounting,uNinthuCanadianuEdition
EXERCISES
Item Description
E1-30 Objectivesuofufinancialureporting.
E1-31
Roleuofusecuritiesucommissionsuandustockuexchanges.u
E1-32 Useruneeds.
E1-33 SourcesuofuGAAP.
E1-34 StandarduSetting.
E1-35 Challengesufacingufinancialureporting.
E1-36 Stakeholdersuinutheufinancialureportinguenvironment.
TestuBank Chapteru1
Copyrightu©u2010uJohnuWileyu&uSonsuCanada,uLtd.u Unauthorizeducopying,udistribution,uorutransmissionuofuthisupageuisuprohibit
ed
, TheuCanadianuFinancialuReportinguEnvironment 1u-u3
MULTIPLE CHOICE—Conceptual
u
1. Theuessentialucharacteristic(s)uofuaccountinguisu(are)
a. communicationuofufinancialuinformationutouinterestedupersons.
b. communicationuofufinancialuinformationuaboutueconomicuentities.
c. identification,umeasurement,uanducommunicationuofufinancialuinformation.
d. alluofuthese.
2. Financialuaccountinguisuconcerneduwithutheuprocessuthatuculminatesuin
a. theupreparationuofufinancialureports.
b. specializedureportsuforuinventoryumanagementuanducontrol.
c. specializedureportsuforuincomeutaxucalculationuandurecognition.
d. reportsuonuchangesuinustockupricesuandufutureuestimatesuofumarketuposition.
3. Financialu accountingu canu beu broadlyu definedu asu theu areau ofu accountingu thatu preparesufi
nancialustatementsutoubeuused
a byupartiesuinternalutoutheubusinessuenterpriseuonly.
b. byuinvestorsuonly.
c. byupartiesubothuinternaluanduexternalutoutheubusinessuenterprise.
d. primarilyubyumanagement.
4. Theuinformationuprovidedubyufinancialureportingupertainsuto
a. individualubusinessuenterprises,uratheruthanutouindustriesuoruanueconomyuasuauwholeuorut
oumembersuofusocietyuasuconsumers.
b. businessuindustries,uratheruthanutouindividualuenterprisesuoruanueconomyuasuauwholeuorut
oumembersuofusocietyuasuconsumers.
c. individualubusinessuenterprises,uindustries,uanduanueconomyuasuauwhole,uratheruthanutou
membersuofusocietyuasuconsumers.
d. anu economyu asu au wholeu andu tou membersu ofu societyu asu consumers,u ratheru thanu toui
ndividualuenterprisesuoruindustries.
5. Whetheruaubusinessuisusuccessfuluanduthrivesuisudetermineduby
a. freeuenterprise.
b. competition.
c. markets.
d. alluofuthese.
6. Anueffectiveucapitaluallocationuprocess
a. encouragesuinnovation.
b. promotesuproductivity.
c. providesuanuefficientuanduliquidumarketuforubuyinguandusellingusecurities.
d. alluofuthese.
TestuBank Chapteru1
Copyrightu©u2010uJohnuWileyu&uSonsuCanada,uLtd.u Unauthorizeducopying,udistribution,uorutransmissionuofuthisupageuisuprohibit
ed
THE CANADIAN u
FINANCIAL REPORTING ENVIRONMENT
u u
MULTIPLE CHOICE—Conceptual
u
Answer No. Description
d 1. Accountingucharacteristics.
a 2. Natureuofufinancialuaccounting.
c 3. Definitionuofufinancialuaccounting.
a 4. Financialureportinguentity.
d 5. Efficientuuseuofuresources.
d 6. Capitaluallocationuprocess.
c 7. Assessingumanagementustewardship.
c 8. Objectivesuofufinancialureporting.
a 9. RoleuofuAcSB.
c 10. BodyuresponsibleuforusettinguGAAP.
b 11. Preparationuofubiaseduinformation.
d 12. Partiesuinstrumentaluinudevelopmentuofureportingustandards.
d 13. Stakeholdersuinutheufinancialureportinguenvironment..
a 14. “Dueuprocess”.
d 15. Causesuofusubprimeulendingucrisis.
d 16. Managementubias.
b 17. AdoptionuofuIFRS.
c 18. RoleuofuOSC.
d 19. DefinitionuofuGAAP.
b 20. Changingunatureuofutheueconomy.
d 21. Exerciseuofuprofessionalujudgement.
c 22. Majorufactorsuinutheureportinguenvironment.
a 23. Impactuofutechnologyuonufinancialureporting.
b 24. Natureuofutheu“BalanceduScorecard”.
a 25. Responsibilityuforufinancialustatements.
d 26. GAAPuforuprivateuenterprises.
d 27. Reportinguprinciples
b 28. SOX.
a 29 AcSB’sustandardusettinguprocess
TestuBank Chapteru1
Copyrightu©u2010uJohnuWileyu&uSonsuCanada,uLtd.u Unauthorizeducopying,udistribution,uorutransmissionuofuthisupageuisuprohibit
ed
,1u-u2 TestuBankuforuIntermediateuAccounting,uNinthuCanadianuEdition
EXERCISES
Item Description
E1-30 Objectivesuofufinancialureporting.
E1-31
Roleuofusecuritiesucommissionsuandustockuexchanges.u
E1-32 Useruneeds.
E1-33 SourcesuofuGAAP.
E1-34 StandarduSetting.
E1-35 Challengesufacingufinancialureporting.
E1-36 Stakeholdersuinutheufinancialureportinguenvironment.
TestuBank Chapteru1
Copyrightu©u2010uJohnuWileyu&uSonsuCanada,uLtd.u Unauthorizeducopying,udistribution,uorutransmissionuofuthisupageuisuprohibit
ed
, TheuCanadianuFinancialuReportinguEnvironment 1u-u3
MULTIPLE CHOICE—Conceptual
u
1. Theuessentialucharacteristic(s)uofuaccountinguisu(are)
a. communicationuofufinancialuinformationutouinterestedupersons.
b. communicationuofufinancialuinformationuaboutueconomicuentities.
c. identification,umeasurement,uanducommunicationuofufinancialuinformation.
d. alluofuthese.
2. Financialuaccountinguisuconcerneduwithutheuprocessuthatuculminatesuin
a. theupreparationuofufinancialureports.
b. specializedureportsuforuinventoryumanagementuanducontrol.
c. specializedureportsuforuincomeutaxucalculationuandurecognition.
d. reportsuonuchangesuinustockupricesuandufutureuestimatesuofumarketuposition.
3. Financialu accountingu canu beu broadlyu definedu asu theu areau ofu accountingu thatu preparesufi
nancialustatementsutoubeuused
a byupartiesuinternalutoutheubusinessuenterpriseuonly.
b. byuinvestorsuonly.
c. byupartiesubothuinternaluanduexternalutoutheubusinessuenterprise.
d. primarilyubyumanagement.
4. Theuinformationuprovidedubyufinancialureportingupertainsuto
a. individualubusinessuenterprises,uratheruthanutouindustriesuoruanueconomyuasuauwholeuorut
oumembersuofusocietyuasuconsumers.
b. businessuindustries,uratheruthanutouindividualuenterprisesuoruanueconomyuasuauwholeuorut
oumembersuofusocietyuasuconsumers.
c. individualubusinessuenterprises,uindustries,uanduanueconomyuasuauwhole,uratheruthanutou
membersuofusocietyuasuconsumers.
d. anu economyu asu au wholeu andu tou membersu ofu societyu asu consumers,u ratheru thanu toui
ndividualuenterprisesuoruindustries.
5. Whetheruaubusinessuisusuccessfuluanduthrivesuisudetermineduby
a. freeuenterprise.
b. competition.
c. markets.
d. alluofuthese.
6. Anueffectiveucapitaluallocationuprocess
a. encouragesuinnovation.
b. promotesuproductivity.
c. providesuanuefficientuanduliquidumarketuforubuyinguandusellingusecurities.
d. alluofuthese.
TestuBank Chapteru1
Copyrightu©u2010uJohnuWileyu&uSonsuCanada,uLtd.u Unauthorizeducopying,udistribution,uorutransmissionuofuthisupageuisuprohibit
ed
