TEST BANK For h h
Modern Advanced Accounting In Canada
h h h h
10th Edition h
By Darrell Herauf, Chima Mbagwu
h h h h
Verified Chapter's 1 - 12 | Complete
h h h h h h
1-1
,TABLE OF CONTENTS h h
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
h h h h h h h h h
CHAPTER 2 Investments in Equity Securities
h h h h h
CHAPTER 3 Business Combinations
h h h
CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
h h h h h h
CHAPTER 5 Consolidation Subsequent to Acquisition Date
h h h h h h
CHAPTER 6 Intercompany Inventory and Land Profits
h h h h h h
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
h h h h h h h h h h
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
h h h h h h h h
CHAPTER 9 Other Consolidation Reporting Issues
h h h h h
CHAPTER 10 Foreign Currency Transactions
h h h h
CHAPTER 11 Translation and Consolidation of Foreign Operations
h h h h h h h
CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
h h h h h h h h
1-2
, Chapter 01 h
Conceptual and Case Analysis Frameworks for Financial Reporting
h h h h h h h h
Multiple Choice Questions
h h
1. Which of the following would NOT be a reason to obtain a greater understanding of
h h h h h h h h h h h h h h
accounting practices in other nations?
h h h h h
A. Financial results are disclosed in different currencies.
h h h h h h
B. One needs to be aware of differing disclosure requirements from nation to nation, as this
h h h h h h h h h h h h h h
impacts the preparation of financial statements.
h h h h h h
C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing
h h h h h h h h h
practices are not permitted in North America.
h h h h h h h
D. Departures from the historical cost principle may be possible in other nations.
h h h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
2. Which of the following would be most affected by financial statements being prepared
h h h h h h h h h h h h
under different accounting principles?
h h h h
A. Reduced comparability. h
B. Reduced reliability. h
C. Increased complexity. h
D. Inaccurate asset valuations. h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
1-3
, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
h h h h h h h h h h h
standards. Why do companies in Canada ensure that their financial reporting is consistent
h h h h h h h h h h h h h
with Canadian GAAP?
h h h
A. Their bank requires them to do so.
h h h h h h
B. Their auditors require them to do so.
h h h h h h
C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
h h h h h h h h h h h h
boards of directors.
h h h
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
h h h h h h h h h h
required by many legal statutes.
h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
4. Which decision has Canada made with respect to financial reporting for private
h h h h h h h h h h h
enterprises?
h
A. To adopt the IFRS standards for small and medium-sized enterprises.
h h h h h h h h h
B. To retain the current standards.
h h h h
C. To look to US GAAP for standards.
h h h h h h
D. To develop and maintain its own standards for private enterprises.
h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-02 hDescribe hhow haccounting hstandards hin hCanada hare htailored hto hdifferent htypes hof
horganizations. h Topic: h01-05 hGAAP hfor hPrivate hEnterprises
5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
h h h h h h h h h h h h h h
A. A corporation that has no public shareholders.
h h h h h h
B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
h h h h h h h h h h h h h h h
C. A corporation which is not profit oriented.
h h h h h h
D. A profit oriented enterprise that has none of its issued and outstanding financial
h h h h h h h h h h h h
instruments traded in a public market and does not hold assets in a fiduciary capacity for a
h h h h h h h h h h h h h h h h h
broad group of outsiders as one of its primary businesses.
h h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-02 hDescribe hhow haccounting hstandards hin hCanada hare htailored hto hdifferent htypes hof
horganizations. h Topic: h01-05 hGAAP hfor hPrivate hEnterprises
1-4
Modern Advanced Accounting In Canada
h h h h
10th Edition h
By Darrell Herauf, Chima Mbagwu
h h h h
Verified Chapter's 1 - 12 | Complete
h h h h h h
1-1
,TABLE OF CONTENTS h h
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
h h h h h h h h h
CHAPTER 2 Investments in Equity Securities
h h h h h
CHAPTER 3 Business Combinations
h h h
CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
h h h h h h
CHAPTER 5 Consolidation Subsequent to Acquisition Date
h h h h h h
CHAPTER 6 Intercompany Inventory and Land Profits
h h h h h h
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
h h h h h h h h h h
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
h h h h h h h h
CHAPTER 9 Other Consolidation Reporting Issues
h h h h h
CHAPTER 10 Foreign Currency Transactions
h h h h
CHAPTER 11 Translation and Consolidation of Foreign Operations
h h h h h h h
CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
h h h h h h h h
1-2
, Chapter 01 h
Conceptual and Case Analysis Frameworks for Financial Reporting
h h h h h h h h
Multiple Choice Questions
h h
1. Which of the following would NOT be a reason to obtain a greater understanding of
h h h h h h h h h h h h h h
accounting practices in other nations?
h h h h h
A. Financial results are disclosed in different currencies.
h h h h h h
B. One needs to be aware of differing disclosure requirements from nation to nation, as this
h h h h h h h h h h h h h h
impacts the preparation of financial statements.
h h h h h h
C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing
h h h h h h h h h
practices are not permitted in North America.
h h h h h h h
D. Departures from the historical cost principle may be possible in other nations.
h h h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
2. Which of the following would be most affected by financial statements being prepared
h h h h h h h h h h h h
under different accounting principles?
h h h h
A. Reduced comparability. h
B. Reduced reliability. h
C. Increased complexity. h
D. Inaccurate asset valuations. h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
1-3
, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
h h h h h h h h h h h
standards. Why do companies in Canada ensure that their financial reporting is consistent
h h h h h h h h h h h h h
with Canadian GAAP?
h h h
A. Their bank requires them to do so.
h h h h h h
B. Their auditors require them to do so.
h h h h h h
C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
h h h h h h h h h h h h
boards of directors.
h h h
D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually
h h h h h h h h h h
required by many legal statutes.
h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-01 hDescribe hand happly hthe hconceptual hframework hfor hfinancial hreporting.
h Topic: h01-01 hThe hConceptual hFramework hfor hFinancial hReporting
4. Which decision has Canada made with respect to financial reporting for private
h h h h h h h h h h h
enterprises?
h
A. To adopt the IFRS standards for small and medium-sized enterprises.
h h h h h h h h h
B. To retain the current standards.
h h h h
C. To look to US GAAP for standards.
h h h h h h
D. To develop and maintain its own standards for private enterprises.
h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-02 hDescribe hhow haccounting hstandards hin hCanada hare htailored hto hdifferent htypes hof
horganizations. h Topic: h01-05 hGAAP hfor hPrivate hEnterprises
5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
h h h h h h h h h h h h h h
A. A corporation that has no public shareholders.
h h h h h h
B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
h h h h h h h h h h h h h h h
C. A corporation which is not profit oriented.
h h h h h h
D. A profit oriented enterprise that has none of its issued and outstanding financial
h h h h h h h h h h h h
instruments traded in a public market and does not hold assets in a fiduciary capacity for a
h h h h h h h h h h h h h h h h h
broad group of outsiders as one of its primary businesses.
h h h h h h h h h h
Accessibility: hKeyboard hNavigation
h Blooms: hRemember
Difficulty: hEasy
Learning hObjective: h01-02 hDescribe hhow haccounting hstandards hin hCanada hare htailored hto hdifferent htypes hof
horganizations. h Topic: h01-05 hGAAP hfor hPrivate hEnterprises
1-4
