RRRR
Advanced Accounting in Canada, 1st Canadian Edition
TEST BANK For Advanced Accounting In Canada, 1st Canadian
Edition By Nathalie Johnstone
Prose1 Stuvia
,Test Bank Table of Contents
Chapter Title
Chapter 1 Introduction to Advanced Financial Accounting
Chapter 2 Accounting for Non-Controlled Investments
Chapter 3 Introduction to Business Combinations
Chapter 4 Consolidated Financial Statements on Acquisition Date
Chapter 5 Consolidated Financial Statements Subsequent to Acquisition
Chapter 6 Intercompany Transactions
Chapter 7 Investments in Associates and Joint Ventures
Chapter 8 Translation of Foreign Operations and Foreign Currency
Chapter 9 Accounting for Derivatives and Hedging Activities
Chapter 10 Accounting for Not-for-Profit Organizations
Chapter 11 Accounting for Government Organizations
Test Bank
Advanced Accounting in Canada, 1st Canadian Edition
Chapter 1: Introduction to Advanced Financial Accounting
,Part I: Multiple Choice Questions (25 Questions)
1) A private company in Canada that is closely held, has no debt, and wants to
simplify the accounting process is most likely to report under which part of the
CPA Canada Handbook?
A) Part II — Accounting Standards for Private Enterprises (ASPE)
B) Part IV — Accounting Standards for Pensions
C) Part I — International Financial Reporting Standards (IFRS)
D) Part III — Accounting Standards for Not-for-Profit Organizations
Answer: A
Explanation: Part II of the CPA Canada Handbook contains Accounting Standards for
Private Enterprises (ASPE), which was developed specifically for private companies to
provide a simpler, more cost-effective reporting framework. Private companies that are
closely held with users who have direct access to management do not require the complex
disclosures of IFRS, making ASPE the most appropriate choice .
2) Which of the following enterprises must report under IFRS in Canada?
A) All corporations, government agencies and private companies
B) Public companies and private companies whose shareholders' equity exceeds
$500,000,000
C) Public companies, private companies and not-for-profit organizations
D) Publicly accountable enterprises
Answer: D
Explanation: In Canada, publicly accountable enterprises are required to use International
Financial Reporting Standards (IFRS). Publicly accountable enterprises include entities
, whose debt or equity instruments are traded in a public market or that hold assets in a
fiduciary capacity for a broad group of outsiders as one of their primary businesses .
3) What are the four parts of the CPA Canada Handbook — Accounting?
A) Part I (IFRS), Part II (ASPE), Part III (Not-for-Profit), Part IV (Pension Plans)
B) Part I (Public Companies), Part II (Private Companies), Part III (NPOs), Part IV
(Government)
C) Part I (ASPE), Part II (IFRS), Part III (Pensions), Part IV (NPOs)
D) Part I (Corporations), Part II (Partnerships), Part III (Sole Proprietorships), Part IV
(Trusts)
Answer: A
Explanation: The CPA Canada Handbook is organized into four parts: Part I contains
International Financial Reporting Standards (IFRS) applicable to publicly accountable
enterprises; Part II contains Accounting Standards for Private Enterprises (ASPE); Part III
contains standards for not-for-profit organizations; and Part IV contains accounting
standards for pension plans .
4) In 2011, Canada adopted IFRS for publicly accountable enterprises. What was
the primary rationale for this decision?
A) To reduce the cost of financial reporting for Canadian companies
B) To improve consistency and comparability in international capital markets
C) To eliminate the need for Canadian accounting standards entirely
D) To align with United States accounting requirements
Answer: B
Explanation: As the global economy expanded, the Accounting Standards Board (AcSB)
Advanced Accounting in Canada, 1st Canadian Edition
TEST BANK For Advanced Accounting In Canada, 1st Canadian
Edition By Nathalie Johnstone
Prose1 Stuvia
,Test Bank Table of Contents
Chapter Title
Chapter 1 Introduction to Advanced Financial Accounting
Chapter 2 Accounting for Non-Controlled Investments
Chapter 3 Introduction to Business Combinations
Chapter 4 Consolidated Financial Statements on Acquisition Date
Chapter 5 Consolidated Financial Statements Subsequent to Acquisition
Chapter 6 Intercompany Transactions
Chapter 7 Investments in Associates and Joint Ventures
Chapter 8 Translation of Foreign Operations and Foreign Currency
Chapter 9 Accounting for Derivatives and Hedging Activities
Chapter 10 Accounting for Not-for-Profit Organizations
Chapter 11 Accounting for Government Organizations
Test Bank
Advanced Accounting in Canada, 1st Canadian Edition
Chapter 1: Introduction to Advanced Financial Accounting
,Part I: Multiple Choice Questions (25 Questions)
1) A private company in Canada that is closely held, has no debt, and wants to
simplify the accounting process is most likely to report under which part of the
CPA Canada Handbook?
A) Part II — Accounting Standards for Private Enterprises (ASPE)
B) Part IV — Accounting Standards for Pensions
C) Part I — International Financial Reporting Standards (IFRS)
D) Part III — Accounting Standards for Not-for-Profit Organizations
Answer: A
Explanation: Part II of the CPA Canada Handbook contains Accounting Standards for
Private Enterprises (ASPE), which was developed specifically for private companies to
provide a simpler, more cost-effective reporting framework. Private companies that are
closely held with users who have direct access to management do not require the complex
disclosures of IFRS, making ASPE the most appropriate choice .
2) Which of the following enterprises must report under IFRS in Canada?
A) All corporations, government agencies and private companies
B) Public companies and private companies whose shareholders' equity exceeds
$500,000,000
C) Public companies, private companies and not-for-profit organizations
D) Publicly accountable enterprises
Answer: D
Explanation: In Canada, publicly accountable enterprises are required to use International
Financial Reporting Standards (IFRS). Publicly accountable enterprises include entities
, whose debt or equity instruments are traded in a public market or that hold assets in a
fiduciary capacity for a broad group of outsiders as one of their primary businesses .
3) What are the four parts of the CPA Canada Handbook — Accounting?
A) Part I (IFRS), Part II (ASPE), Part III (Not-for-Profit), Part IV (Pension Plans)
B) Part I (Public Companies), Part II (Private Companies), Part III (NPOs), Part IV
(Government)
C) Part I (ASPE), Part II (IFRS), Part III (Pensions), Part IV (NPOs)
D) Part I (Corporations), Part II (Partnerships), Part III (Sole Proprietorships), Part IV
(Trusts)
Answer: A
Explanation: The CPA Canada Handbook is organized into four parts: Part I contains
International Financial Reporting Standards (IFRS) applicable to publicly accountable
enterprises; Part II contains Accounting Standards for Private Enterprises (ASPE); Part III
contains standards for not-for-profit organizations; and Part IV contains accounting
standards for pension plans .
4) In 2011, Canada adopted IFRS for publicly accountable enterprises. What was
the primary rationale for this decision?
A) To reduce the cost of financial reporting for Canadian companies
B) To improve consistency and comparability in international capital markets
C) To eliminate the need for Canadian accounting standards entirely
D) To align with United States accounting requirements
Answer: B
Explanation: As the global economy expanded, the Accounting Standards Board (AcSB)
