TEST BANK FOR
Modern Advanced Accounting in Canada
by Kevin Veenstra Darrell Herauf, Chima Mbagwu
11th Edition
1-1
,Full Test Bank For
Modern Advanced Accounting In Canada 11th Edition Hilton
Murray, Herauf Darrell
Chapter
01 Conceptual And Case Analysis Frameworks For Financial
Reporting
Multiple Choice Questions
1. Which Of The Following Would Not Be A Reason To Obtain A Greater
Understanding Of Accounting Practices In Other Nations?
A. Financial Results Are Disclosed In Different Currencies.
B. One Needs To Be Aware Of Differing Disclosure Requirements From Nation To
Nation, As This Impacts The Preparation Of Financial Statements.
C. Income-Smoothing May Have Affected A Foreign Subsidiary's Results; Such
Smoothing Practices Are Not Permitted In North America.
D. Departures From The Historical Cost Principle May Be Possible In Other Nations.
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Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
2. Which Of The Following Would Be Most Affected By Financial Statements Being
Prepared Under Different Accounting Principles?
A. Reduced Comparability.
B. Reduced Reliability.
C. Increased Complexity.
D. Inaccurate Asset Valuations.
Accessibility: Keyboard Navigation Blooms:
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Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
1-2
,3. The Cpa Canada Handbook - Accounting Is The Handbook Of Canadian Accounting
Standards. Why Do Companies In Canada Ensure That Their Financial Reporting Is
Consistent With Canadian Gaap?
A. Their Bank Requires Them To Do So.
B. Their Auditors Require Them To Do So.
C. Reporting Under The Cpa Canada Handbook - Accounting Is Required By Public Companies'
Boards Of Directors.
D. Compliance With The Cpa Canada Handbook - Accounting Pronouncements Is Usually
Required By Many Legal Statutes.
Accessibility: Keyboard Navigation Blooms:
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Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
4. Which Decision Has Canada Made With Respect To Financial Reporting For
Private Enterprises?
A. To Adopt The Ifrs Standards For Small And Medium-Sized Enterprises.
B. To Retain The Current Standards.
C. To Look To Us Gaap For Standards.
D. To Develop And Maintain Its Own Standards For Private Enterprises.
Accessibility: Keyboard Navigation Blooms:
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Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
5. Starting In 2011, What Is The Definition Of A Private Enterprise (Pe) Under Canadian Gaap?
A. A Corporation That Has No Public Shareholders.
B. A Corporation That Has Less Than 500 Shareholders And Is Not Listed On A Stock Exchange.
C. A Corporation Which Is Not Profit Oriented.
D. A Profit Oriented Enterprise That Has None Of Its Issued And Outstanding Financial
Instruments Traded In A Public Market And Does Not Hold Assets In A Fiduciary
Capacity For A Broad Group Of Outsiders As One Of Its Primary Businesses.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
1-3
, 6. Which Enterprises Must Report Under Ifrs In Canada?
A. All Corporations, Government Agencies And Private Companies.
B. Public Companies And Private Companies Whose Shareholders' Equity Is In Excess Of
$500,000,000 At Any Particular Year End.
C. Public Companies, Private Companies And Not-For-Profit Organizations.
D. Publicly Accountable Enterprises.
Accessibility: Keyboard Navigation Blooms:
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Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-04 Gaap For Publicly Accountable Enterprises
7. What Approach Did Canada First Decide To Take With Respect To Convergence With Ifrs?
A. Harmonization Of Cpa Canada Handbook With Ifrs.
B. Substituting Ifrs For Canadian Gaap When Approved By The Iasb.
C. Adopting Some But Not Necessarily All Ifrss By Reviewing Them On A Case By Case Basis.
D. Reviewing Them With All Publically Accountable Entities To See Which Ones
Would Be Acceptable.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-04 Gaap For Publicly Accountable Enterprises
8. What Choice(S) Do Private Enterprises Have In Their Financial Reporting In Canada?
A. They Have No Choice At All; They Will Need To Report Under Ifrs.
B. They May Elect To Continue With Differential Reporting.
C. They May Adopt Accounting Principles That Are Appropriate To The Circumstances.
D. They May Elect To Report Under Either Ifrs Or Aspe But Once Adopted, Must Use
All The Standards.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
1-4
Modern Advanced Accounting in Canada
by Kevin Veenstra Darrell Herauf, Chima Mbagwu
11th Edition
1-1
,Full Test Bank For
Modern Advanced Accounting In Canada 11th Edition Hilton
Murray, Herauf Darrell
Chapter
01 Conceptual And Case Analysis Frameworks For Financial
Reporting
Multiple Choice Questions
1. Which Of The Following Would Not Be A Reason To Obtain A Greater
Understanding Of Accounting Practices In Other Nations?
A. Financial Results Are Disclosed In Different Currencies.
B. One Needs To Be Aware Of Differing Disclosure Requirements From Nation To
Nation, As This Impacts The Preparation Of Financial Statements.
C. Income-Smoothing May Have Affected A Foreign Subsidiary's Results; Such
Smoothing Practices Are Not Permitted In North America.
D. Departures From The Historical Cost Principle May Be Possible In Other Nations.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
2. Which Of The Following Would Be Most Affected By Financial Statements Being
Prepared Under Different Accounting Principles?
A. Reduced Comparability.
B. Reduced Reliability.
C. Increased Complexity.
D. Inaccurate Asset Valuations.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
1-2
,3. The Cpa Canada Handbook - Accounting Is The Handbook Of Canadian Accounting
Standards. Why Do Companies In Canada Ensure That Their Financial Reporting Is
Consistent With Canadian Gaap?
A. Their Bank Requires Them To Do So.
B. Their Auditors Require Them To Do So.
C. Reporting Under The Cpa Canada Handbook - Accounting Is Required By Public Companies'
Boards Of Directors.
D. Compliance With The Cpa Canada Handbook - Accounting Pronouncements Is Usually
Required By Many Legal Statutes.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe And Apply The Conceptual Framework For Financial Reporting. Topic: 01-
01 The Conceptual Framework For Financial Reporting
4. Which Decision Has Canada Made With Respect To Financial Reporting For
Private Enterprises?
A. To Adopt The Ifrs Standards For Small And Medium-Sized Enterprises.
B. To Retain The Current Standards.
C. To Look To Us Gaap For Standards.
D. To Develop And Maintain Its Own Standards For Private Enterprises.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
5. Starting In 2011, What Is The Definition Of A Private Enterprise (Pe) Under Canadian Gaap?
A. A Corporation That Has No Public Shareholders.
B. A Corporation That Has Less Than 500 Shareholders And Is Not Listed On A Stock Exchange.
C. A Corporation Which Is Not Profit Oriented.
D. A Profit Oriented Enterprise That Has None Of Its Issued And Outstanding Financial
Instruments Traded In A Public Market And Does Not Hold Assets In A Fiduciary
Capacity For A Broad Group Of Outsiders As One Of Its Primary Businesses.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
1-3
, 6. Which Enterprises Must Report Under Ifrs In Canada?
A. All Corporations, Government Agencies And Private Companies.
B. Public Companies And Private Companies Whose Shareholders' Equity Is In Excess Of
$500,000,000 At Any Particular Year End.
C. Public Companies, Private Companies And Not-For-Profit Organizations.
D. Publicly Accountable Enterprises.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-04 Gaap For Publicly Accountable Enterprises
7. What Approach Did Canada First Decide To Take With Respect To Convergence With Ifrs?
A. Harmonization Of Cpa Canada Handbook With Ifrs.
B. Substituting Ifrs For Canadian Gaap When Approved By The Iasb.
C. Adopting Some But Not Necessarily All Ifrss By Reviewing Them On A Case By Case Basis.
D. Reviewing Them With All Publically Accountable Entities To See Which Ones
Would Be Acceptable.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-04 Gaap For Publicly Accountable Enterprises
8. What Choice(S) Do Private Enterprises Have In Their Financial Reporting In Canada?
A. They Have No Choice At All; They Will Need To Report Under Ifrs.
B. They May Elect To Continue With Differential Reporting.
C. They May Adopt Accounting Principles That Are Appropriate To The Circumstances.
D. They May Elect To Report Under Either Ifrs Or Aspe But Once Adopted, Must Use
All The Standards.
Accessibility: Keyboard Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe How Accounting Standards In Canada Are Tailored To Different Types Of Organizations. Topic:
01-05 Gaap For Private Enterprises
1-4
