Test Bank - For Modern Advanced Accounting In Canada 9th Edition by Hilton Murray, Herauf Darrell

TEST BANK For vn vn




Modern Advanced Accounting In Canada
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10th Edition vn




By Darrell Herauf, Chima Mbagwu
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Verified Chapter's 1 - 12 | Complete
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,TABLE OF CONTENTS vn vn




CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
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CHAPTER 2 Investments in Equity Securities
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CHAPTER 3 Business Combinations
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CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
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CHAPTER 5 Consolidation Subsequent to Acquisition Date
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CHAPTER 6 Intercompany Inventory and Land Profits
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CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
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CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
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CHAPTER 9 Other Consolidation Reporting Issues
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CHAPTER 10 Foreign Currency Transactions
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CHAPTER 11 Translation and Consolidation of Foreign Operations
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CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
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, Chapter01 vn




vn ConceptualandCaseAnalysisFrameworksforFinancialReporting vn vn vn vn vn vn vn




Multiple Choice Questions vn vn




1. Whichofthe following would NOT be a reason toobtaina greater understanding of
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accounting practices in other nations?
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A. Financialresultsare disclosed indifferent currencies. vn vn vn vn vn vn




B. One needs to be awareofdiffering disclosure requirements fromnationto nation, as this
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impacts the preparation of financial statements.
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C. Income-smoothing mayhaveaffected aforeign subsidiary's results;suchsmoothing vn vn vn vn vn vn vn vn vn




practices are not permitted in North America.
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D. Departuresfromthe historicalcost principle maybe possible inother nations. vn vn vn vn vn vn vn vn vn vn vn




Accessibility:KeyboardNavigation vn vn




vBlooms: Remember
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Difficulty: Easy vn




Learning Objective: 01-01 Describe and apply the conceptualframework for financialreporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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2. Whichofthe following would be most affected byfinancialstatementsbeing prepared
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under different accounting principles?
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A. Reduced comparability. vn




B. Reduced reliability. vn




C. Increasedcomplexity. vn




D. Inaccurate asset valuations. vn vn




Accessibility:KeyboardNavigation vn vn




vBlooms: Remember
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Difficulty: Easy vn




Learning Objective: 01-01 Describe and apply the conceptualframework for financialreporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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1-3

, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
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standards. Whydo companies in Canada ensure that their financialreporting isconsistent with
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Canadian GAAP?
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A. Their bank requires themto do so. vn vn vn vn vn vn




B. Their auditorsrequire themto do so. vn vn vn vn vn vn




C. Reporting under the CPA Canada Handbook -Accounting is required by public companies' vn vn vn vn vn vn vn vn vn vn vn vn




boards of directors.
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D. Compliance withthe CPA Canada Handbook -Accounting pronouncements isusually vn vn vn vn vn vn vn vn vn vn




required by many legal statutes.
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Accessibility:KeyboardNavigation vn vn




vBlooms: Remember
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Difficulty: Easy vn




Learning Objective: 01-01 Describe and apply the conceptualframework for financialreporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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4. Whichdecision hasCanada madewithrespect to financialreporting for private
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enterprises?
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A. To adopt the IFRS standards for smalland medium-sized enterprises.
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B. To retainthe current standards.
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C. To look to US GAAP for standards.
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D. To develop and maintain its ownstandards for private enterprises.
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Accessibility:KeyboardNavigation vn vn




vBlooms: Remember
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Difficulty: Easy vn




Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
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vTopic: 01-05 GAAP for Private Enterprises
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5. Starting in2011, what is the definitionofa private enterprise (PE) under CanadianGAAP?
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A. Acorporationthat has no public shareholders.
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B. Acorporationthat has less than500 shareholders and is not listed ona stock exchange.
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C. Acorporationwhich is not profit oriented.
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D. A profit oriented enterprise that has none of its issued and outstanding financial
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instruments traded ina public market and does nothold assets ina fiduciarycapacity for a broad
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group of outsiders as one of its primary businesses.
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Accessibility:KeyboardNavigation vn vn




vBlooms: Remember
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Difficulty: Easy vn




Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
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vTopic: 01-05 GAAP for Private Enterprises
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