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

TEST BANK For vbvn vbvn




Modern Advanced Accounting In Canada
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10th Edition vbvn




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




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 n
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vbvn ConceptualandCase Analysis Frameworks for FinancialReporting vb
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Multiple Choice Questions vbvn vbvn




1. Which ofthe following would NOT be a reason to obtain a greater understanding of
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accounting practices in other nations?
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A. Financialresults are disclosed indifferent currencies. vbvn vbvn vbvn vbvn vvnb v bvn




B. One needs to be aware ofdiffering disclosure requirements fromnation to nation, as this
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impacts the preparation of financial statements.
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C. Income-smoothing mayhave affected a foreign subsidiary's results;suchsmoothing vbvn vbn vbvn vbvn vbvn vbvn vbvn vbvn vbvn




practices are not permitted in North America.
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D. Departures fromthe historical cost principle may be possible in other nations. vbvn vbn vbvn vbvn v bv n v bv n vbvn vbvn v bv n vbvn vb vn




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v Blooms: Remember
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Difficulty: Easy vbvn




Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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v Topic: 01-01 The Conceptual Framework for Financial Reporting
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2. Whichofthe following would be most affected byfinancialstatements being prepared
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under different accounting principles?
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A. Reduced comparability. vbvn




B. Reduced reliability. vbvn




C. Increased complexity. vbvn




D. Inaccurate asset valuations. vbvn vbvn




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v Blooms: Remember
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Difficulty: Easy vbvn




Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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v Topic: 01-01 The Conceptual Framework for Financial Reporting
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, 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 is consistent
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with Canadian GAAP?
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A. Their bank requires themto do so. v b vn vbvn vbvn vbn vbv n vbvn




B. Their auditors require themto do so. vb vn vbvn vbvn vbn v b vn vbvn




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




boards of directors.
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D. Compliance withthe CPA Canada Handbook -Accounting pronouncements is usually vbvn vbn vbvn vb vn vbvn vbvn vbvn vbvn vbvn vbvn




required by many legal statutes.
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v Blooms: Remember
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Difficulty: Easy vbvn




Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.
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v Topic: 01-01 The Conceptual Framework for Financial Reporting
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4. Whichdecision has Canada made withrespect to financialreporting for private vbvn vbvn vbvn vbvn vbvn vbvn vbvn vbvn vbvn vb vn vbvn




enterprises?
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A. To adopt the IFRS standards for smalland medium-sized enterprises.
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B. To retain the current standards.
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C. To look to US GAAP for standards.
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D. To develop and maintain its own standards for private enterprises.
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v Blooms: Remember
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Difficulty: Easy vbvn




Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
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v Topic: 01-05 GAAP for Private Enterprises
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5. Starting in 2011, what is the definition ofa private enterprise (PE) under Canadian GAAP? vbvn vbvn vbvn v bv n vbvn vbvn vbvn vbvn vbvn vbvn vbvn vbvn vbv n vbvn




A. A corporation that has no public shareholders.
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B. Acorporation that has less than 500 shareholders and is not listed on a stock exchange.
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C. Acorporation which 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 in a public market and does not hold assets in a fiduciary capacity for a
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broad group of outsiders as one of its primary businesses.
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v Blooms: Remember
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Difficulty: Easy vbvn




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