1-1
,Modern Advanced Accounting In Canada 10th Edition By Darell Haerauf,Chima Mbagwu All Chapters 1-12
TABLE OF CONTENTS
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
CHAPTER 2 Investments in Equity Securities
CHAPTER 3 Business Combinations
CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
CHAPTER 5 Consolidation Subsequent to Acquisition Date
CHAPTER 6 Intercompany Inventory and Land Profits
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
CHAPTER 9 Other Consolidation Reporting Issues
CHAPTER 10 Foreign Currency Transactions
CHAPTER 11 Translation and Consolidation of Foreign Operations
CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
1-2
,ANSWER CHOICE IN BOLD BLACK
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 th is
impacts the preparation of financial statements.
C. Income-
smoothing may have affected a foreign subsidiary's results; suchAsmoothing practices are not
permitted in NorthAAmerica.
D. Departures from the historical cost principle may be possible in other nations.
Accessibility: Keyboard
Navigation Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework for financial
reporting. Topic: 01- 01 The Conceptual Framework
forAFinancial Reporting
2. Which of the following would be most affected by financial statements being prepare d under
different accounting principles?
A. Reduced comparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
Accessibility: Keyboard
Navigation Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework forAfinancial
reporting. Topic: 01- 01 The Conceptual Framework
forAFinancial Reporting
1-3
, 3. TheACPA 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 Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework forAfinancial
reporting. Topic: 01- 01 The Conceptual Framework forAFinancial
Reporting
4. Which decision has Canada made with respect to financial reporting for privat e
enterprises?
A. To adoptAthe 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 Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
02 DescribeAhow accounting standards in Canada are tailored to different types
ofAorganizations. Topic: 01- 05 GAAP forAPrivate 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. AAcorporation that has less than 500 shareholders and is not listed on a stockAexchange.
C. A corporation which is not profit oriented.
D. A profit oriented enterprise that has none of its issued and outstanding financial instr uments
traded in a public market and does not hold assets in a fiduciary capacity for aAbr oad group of
outsiders as one of its primary businesses.
Accessibility: Keyboard
Navigation Bloo ms: Remember
1-4
,Modern Advanced Accounting In Canada 10th Edition By Darell Haerauf,Chima Mbagwu All Chapters 1-12
TABLE OF CONTENTS
CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
CHAPTER 2 Investments in Equity Securities
CHAPTER 3 Business Combinations
CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
CHAPTER 5 Consolidation Subsequent to Acquisition Date
CHAPTER 6 Intercompany Inventory and Land Profits
CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
CHAPTER 9 Other Consolidation Reporting Issues
CHAPTER 10 Foreign Currency Transactions
CHAPTER 11 Translation and Consolidation of Foreign Operations
CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
1-2
,ANSWER CHOICE IN BOLD BLACK
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 th is
impacts the preparation of financial statements.
C. Income-
smoothing may have affected a foreign subsidiary's results; suchAsmoothing practices are not
permitted in NorthAAmerica.
D. Departures from the historical cost principle may be possible in other nations.
Accessibility: Keyboard
Navigation Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework for financial
reporting. Topic: 01- 01 The Conceptual Framework
forAFinancial Reporting
2. Which of the following would be most affected by financial statements being prepare d under
different accounting principles?
A. Reduced comparability.
B. Reduced reliability.
C. Increased complexity.
D. Inaccurate asset valuations.
Accessibility: Keyboard
Navigation Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework forAfinancial
reporting. Topic: 01- 01 The Conceptual Framework
forAFinancial Reporting
1-3
, 3. TheACPA 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 Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
01 Describe and apply the conceptual framework forAfinancial
reporting. Topic: 01- 01 The Conceptual Framework forAFinancial
Reporting
4. Which decision has Canada made with respect to financial reporting for privat e
enterprises?
A. To adoptAthe 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 Bloo ms: Remember
Difficulty: Easy
Learning
Objective: 01-
02 DescribeAhow accounting standards in Canada are tailored to different types
ofAorganizations. Topic: 01- 05 GAAP forAPrivate 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. AAcorporation that has less than 500 shareholders and is not listed on a stockAexchange.
C. A corporation which is not profit oriented.
D. A profit oriented enterprise that has none of its issued and outstanding financial instr uments
traded in a public market and does not hold assets in a fiduciary capacity for aAbr oad group of
outsiders as one of its primary businesses.
Accessibility: Keyboard
Navigation Bloo ms: Remember
1-4
