TEST BANK For
c c
Modern Advanced Accounting In Canada
c c c c
10th Edition c
By Darrell Herauf, Chima Mbagwu
c c c c
Verified Chapter's 1 - 12 | Complete
c c c c c c
1-1
,TABLE OF CONTENTS c c
CHAPTER c1 cConceptual cand cCase cAnalysis cFrameworks cfor cFinancial cReporting
CHAPTER c2 cInvestments cin cEquity cSecurities
CHAPTER c3 cBusiness cCombinations
CHAPTER c4 cConsolidation cof cNon-Wholly cOwned cSubsidiaries
CHAPTER c5 cConsolidation cSubsequent cto cAcquisition cDate
CHAPTER c6 cIntercompany cInventory cand cLand cProfits
CHAPTER c7 c(A) cIntercompany cProfits cin cDepreciable cAssets c(B) cIntercompany cBondholdings
CHAPTER c8 cConsolidated cCash cFlows cand cChanges cin cOwnership
CHAPTER c9 cOther cConsolidation cReporting cIssues
CHAPTER c10 cForeign cCurrency cTransactions
CHAPTER c11 cTranslation cand cConsolidation cof cForeign cOperations
CHAPTER c12 cAccounting cfor cNot-for-Profit cand cPublic cSector cOrganizations
1-2
, Chapter c01
cConceptual cand cCase cAnalysis cFrameworks cfor cFinancial
cReporting
Multiple cChoice cQuestions
1. Which cof cthe cfollowing cwould cNOT cbe ca creason cto cobtain ca cgreater cunderstanding
cof caccounting cpractices cin cother cnations?
A. Financial cresults care cdisclosed cin cdifferent ccurrencies.
B. One cneeds cto cbe caware cof cdiffering cdisclosure crequirements cfrom cnation cto cnation, cas
cthis cimpacts cthe cpreparation cof cfinancial cstatements.
C. Income-smoothing cmay chave caffected ca cforeign csubsidiary's cresults; csuch
csmoothing cpractices care cnot cpermitted cin cNorth cAmerica.
D. Departures cfrom cthe chistorical ccost cprinciple cmay cbe cpossible cin cother cnations.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
2. Which cof cthe cfollowing cwould cbe cmost caffected cby cfinancial cstatements cbeing
cprepared cunder cdifferent caccounting cprinciples?
A. Reduced ccomparability.
B. Reduced creliability.
C. Increased ccomplexity.
D. Inaccurate casset cvaluations.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
1-3
, 3. The cCPA cCanada cHandbook c- cAccounting cis cthe chandbook cof cCanadian caccounting
cstandards. cWhy cdo ccompanies cin cCanada censure cthat ctheir cfinancial creporting cis
cconsistent cwith cCanadian cGAAP?
A. Their cbank crequires cthem cto cdo cso.
B. Their cauditors crequire cthem cto cdo cso.
C. Reporting cunder cthe cCPA cCanada cHandbook c- cAccounting cis crequired cby cpublic
ccompanies' cboards cof cdirectors.
D. Compliance cwith cthe cCPA cCanada cHandbook c- cAccounting cpronouncements cis
cusually crequired cby cmany clegal cstatutes.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
4. Which cdecision chas cCanada cmade cwith crespect cto cfinancial creporting cfor
cprivate centerprises?
A. To cadopt cthe cIFRS cstandards cfor csmall cand cmedium-sized centerprises.
B. To cretain cthe ccurrent cstandards.
C. To clook cto cUS cGAAP cfor cstandards.
D. To cdevelop cand cmaintain cits cown cstandards cfor cprivate centerprises.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-02 cDescribe chow caccounting cstandards cin cCanada care ctailored cto cdifferent ctypes cof
corganizations. c Topic: c01-05 cGAAP cfor cPrivate cEnterprises
5. Starting cin c2011, cwhat cis cthe cdefinition cof ca cprivate centerprise c(PE) cunder cCanadian cGAAP?
A. A ccorporation cthat chas cno cpublic cshareholders.
B. A ccorporation cthat chas cless cthan c500 cshareholders cand cis cnot clisted con ca cstock cexchange.
C. A ccorporation cwhich cis cnot cprofit coriented.
D. A cprofit coriented centerprise cthat chas cnone cof cits cissued cand coutstanding cfinancial
cinstruments ctraded cin ca cpublic cmarket cand cdoes cnot chold cassets cin ca cfiduciary ccapacity
cfor ca cbroad cgroup cof coutsiders cas cone cof cits cprimary cbusinesses.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-02 cDescribe chow caccounting cstandards cin cCanada care ctailored cto cdifferent ctypes cof
corganizations. c Topic: c01-05 cGAAP cfor cPrivate cEnterprises
1-4
c c
Modern Advanced Accounting In Canada
c c c c
10th Edition c
By Darrell Herauf, Chima Mbagwu
c c c c
Verified Chapter's 1 - 12 | Complete
c c c c c c
1-1
,TABLE OF CONTENTS c c
CHAPTER c1 cConceptual cand cCase cAnalysis cFrameworks cfor cFinancial cReporting
CHAPTER c2 cInvestments cin cEquity cSecurities
CHAPTER c3 cBusiness cCombinations
CHAPTER c4 cConsolidation cof cNon-Wholly cOwned cSubsidiaries
CHAPTER c5 cConsolidation cSubsequent cto cAcquisition cDate
CHAPTER c6 cIntercompany cInventory cand cLand cProfits
CHAPTER c7 c(A) cIntercompany cProfits cin cDepreciable cAssets c(B) cIntercompany cBondholdings
CHAPTER c8 cConsolidated cCash cFlows cand cChanges cin cOwnership
CHAPTER c9 cOther cConsolidation cReporting cIssues
CHAPTER c10 cForeign cCurrency cTransactions
CHAPTER c11 cTranslation cand cConsolidation cof cForeign cOperations
CHAPTER c12 cAccounting cfor cNot-for-Profit cand cPublic cSector cOrganizations
1-2
, Chapter c01
cConceptual cand cCase cAnalysis cFrameworks cfor cFinancial
cReporting
Multiple cChoice cQuestions
1. Which cof cthe cfollowing cwould cNOT cbe ca creason cto cobtain ca cgreater cunderstanding
cof caccounting cpractices cin cother cnations?
A. Financial cresults care cdisclosed cin cdifferent ccurrencies.
B. One cneeds cto cbe caware cof cdiffering cdisclosure crequirements cfrom cnation cto cnation, cas
cthis cimpacts cthe cpreparation cof cfinancial cstatements.
C. Income-smoothing cmay chave caffected ca cforeign csubsidiary's cresults; csuch
csmoothing cpractices care cnot cpermitted cin cNorth cAmerica.
D. Departures cfrom cthe chistorical ccost cprinciple cmay cbe cpossible cin cother cnations.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
2. Which cof cthe cfollowing cwould cbe cmost caffected cby cfinancial cstatements cbeing
cprepared cunder cdifferent caccounting cprinciples?
A. Reduced ccomparability.
B. Reduced creliability.
C. Increased ccomplexity.
D. Inaccurate casset cvaluations.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
1-3
, 3. The cCPA cCanada cHandbook c- cAccounting cis cthe chandbook cof cCanadian caccounting
cstandards. cWhy cdo ccompanies cin cCanada censure cthat ctheir cfinancial creporting cis
cconsistent cwith cCanadian cGAAP?
A. Their cbank crequires cthem cto cdo cso.
B. Their cauditors crequire cthem cto cdo cso.
C. Reporting cunder cthe cCPA cCanada cHandbook c- cAccounting cis crequired cby cpublic
ccompanies' cboards cof cdirectors.
D. Compliance cwith cthe cCPA cCanada cHandbook c- cAccounting cpronouncements cis
cusually crequired cby cmany clegal cstatutes.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-01 cDescribe cand capply cthe cconceptual cframework cfor cfinancial
creporting. c Topic: c01-01 cThe cConceptual cFramework cfor cFinancial cReporting
4. Which cdecision chas cCanada cmade cwith crespect cto cfinancial creporting cfor
cprivate centerprises?
A. To cadopt cthe cIFRS cstandards cfor csmall cand cmedium-sized centerprises.
B. To cretain cthe ccurrent cstandards.
C. To clook cto cUS cGAAP cfor cstandards.
D. To cdevelop cand cmaintain cits cown cstandards cfor cprivate centerprises.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-02 cDescribe chow caccounting cstandards cin cCanada care ctailored cto cdifferent ctypes cof
corganizations. c Topic: c01-05 cGAAP cfor cPrivate cEnterprises
5. Starting cin c2011, cwhat cis cthe cdefinition cof ca cprivate centerprise c(PE) cunder cCanadian cGAAP?
A. A ccorporation cthat chas cno cpublic cshareholders.
B. A ccorporation cthat chas cless cthan c500 cshareholders cand cis cnot clisted con ca cstock cexchange.
C. A ccorporation cwhich cis cnot cprofit coriented.
D. A cprofit coriented centerprise cthat chas cnone cof cits cissued cand coutstanding cfinancial
cinstruments ctraded cin ca cpublic cmarket cand cdoes cnot chold cassets cin ca cfiduciary ccapacity
cfor ca cbroad cgroup cof coutsiders cas cone cof cits cprimary cbusinesses.
Accessibility: cKeyboard cNavigation
c Blooms: cRemember
Difficulty: cEasy
Learning cObjective: c01-02 cDescribe chow caccounting cstandards cin cCanada care ctailored cto cdifferent ctypes cof
corganizations. c Topic: c01-05 cGAAP cfor cPrivate cEnterprises
1-4
