TEST BANK For
m m
Modern Advanced Accounting In Canada
m m m m
10th Edition m
By Darrell Herauf, Chima Mbagwu
m m m m
Verified Chapter's 1 - 12 | Complete
m m m m m m
1-1
,TABLE OF CONTENTS
m m
CHAPTERm1mConceptualmandmCasemAnalysismFrameworksmformFinancialmReporting
CHAPTERm2mInvestmentsminmEquitymSecurities
CHAPTERm3mBusinessmCombinations
CHAPTERm4mConsolidationmofmNon-WhollymOwnedmSubsidiaries
CHAPTERm5mConsolidationmSubsequentmtomAcquisitionmDate
CHAPTERm6mIntercompanymInventorymandmLandmProfits
CHAPTERm7m(A)mIntercompanymProfitsminmDepreciablemAssetsm(B)mIntercompanymBondholdings
CHAPTERm8mConsolidatedmCashmFlowsmandmChangesminmOwnership
CHAPTERm9mOthermConsolidationmReportingmIssues
CHAPTERm10mForeignmCurrencymTransactions
CHAPTERm11mTranslationmandmConsolidationmofmForeignmOperations
CHAPTERm12mAccountingmformNot-for-ProfitmandmPublicmSectormOrganizations
1-2
, Chapterm0
1mConceptualmandmCasemAnalysismFrameworksmformFinancialmRepo
rting
MultiplemChoicemQuestions
1. WhichmofmthemfollowingmwouldmNOTmbemamreasonmtomobtainmamgreatermunderstan
dingmofmaccountingmpracticesminmothermnations?
A. Financialmresultsmaremdisclosedminmdifferentmcurrencies.
B. Onemneedsmtombemawaremofmdifferingmdisclosuremrequirementsmfrommnationmtomnation,m
asmthismimpactsmthempreparationmofmfinancialmstatements.
C. Income-
smoothingmmaymhavemaffectedmamforeignmsubsidiary'smresults;msuchmsmoothingmpracti
cesmaremnotmpermittedminmNorthmAmerica.
D. Departuresmfrommthemhistoricalmcostmprinciplemmaymbempossibleminmothermnations.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
2. Whichmofmthemfollowingmwouldmbemmostmaffectedmbymfinancialmstatementsmbeingmpr
eparedmundermdifferentmaccountingmprinciples?
A. Reducedmcomparability.
B. Reducedmreliability.
C. Increasedmcomplexity.
D. Inaccuratemassetmvaluations.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
1-3
, 3. ThemCPAmCanadamHandbookm-
mAccountingmismthemhandbookmofmCanadianmaccountingmstandards.mWhymdomcompanies
minmCanada mensuremthatmtheirmfinancial mreportingmismconsistentmwithmCanadianmGAAP?
A. Theirmbankmrequiresmthemmtomdomso.
B. Theirmauditorsmrequiremthemmtomdomso.
C. ReportingmundermthemCPAmCanadamHandbookm-
mAccountingmismrequiredmbympublicmcompanies'mboardsmofmdirectors.
D. CompliancemwithmthemCPAmCanadamHandbookm-
mAccountingmpronouncementsmis musuallymrequiredmbymmanymlegalmstatutes.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
4. WhichmdecisionmhasmCanadammademwithmrespectmtomfinancialmreportingmformp
rivatementerprises?
A. TomadoptmthemIFRSmstandardsmformsmallmandmmedium-sizedmenterprises.
B. Tomretainmthemcurrentmstandards.
C. TomlookmtomUSmGAAPmformstandards.
D. Tomdevelopmandmmaintainmitsmownmstandardsmformprivatementerprises.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
02mDescribemhowmaccountingmstandardsminmCanadamaremtailoredmtomdifferentmtypesmofmorganizations.m Topic:m0
1-05mGAAPmformPrivatemEnterprises
5. Startingminm2011,mwhatmismthemdefinitionmofmamprivatementerprisem(PE)mundermCanadianmGAAP?
A. Amcorporationmthatmhasmnompublicmshareholders.
B. Amcorporationmthatmhasmlessmthanm500mshareholdersmandmismnotmlistedmonmamstockmexchange.
C. Amcorporationmwhichmismnotmprofitmoriented.
D. Amprofitmorientedmenterprisemthatmhasmnonemofmitsmissuedmandmoutstandingmfinancialm
instrumentsmtradedminmampublicmmarketmandmdoesmnotmholdmassetsminmamfiduciarymcapaci
tymformambroadmgroupmofmoutsidersmasmonemofmitsmprimarymbusinesses.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
02mDescribemhowmaccountingmstandardsminmCanadamaremtailoredmtomdifferentmtypesmofmorganizations.m Topic:m0
1-05mGAAPmformPrivatemEnterprises
1-4
m m
Modern Advanced Accounting In Canada
m m m m
10th Edition m
By Darrell Herauf, Chima Mbagwu
m m m m
Verified Chapter's 1 - 12 | Complete
m m m m m m
1-1
,TABLE OF CONTENTS
m m
CHAPTERm1mConceptualmandmCasemAnalysismFrameworksmformFinancialmReporting
CHAPTERm2mInvestmentsminmEquitymSecurities
CHAPTERm3mBusinessmCombinations
CHAPTERm4mConsolidationmofmNon-WhollymOwnedmSubsidiaries
CHAPTERm5mConsolidationmSubsequentmtomAcquisitionmDate
CHAPTERm6mIntercompanymInventorymandmLandmProfits
CHAPTERm7m(A)mIntercompanymProfitsminmDepreciablemAssetsm(B)mIntercompanymBondholdings
CHAPTERm8mConsolidatedmCashmFlowsmandmChangesminmOwnership
CHAPTERm9mOthermConsolidationmReportingmIssues
CHAPTERm10mForeignmCurrencymTransactions
CHAPTERm11mTranslationmandmConsolidationmofmForeignmOperations
CHAPTERm12mAccountingmformNot-for-ProfitmandmPublicmSectormOrganizations
1-2
, Chapterm0
1mConceptualmandmCasemAnalysismFrameworksmformFinancialmRepo
rting
MultiplemChoicemQuestions
1. WhichmofmthemfollowingmwouldmNOTmbemamreasonmtomobtainmamgreatermunderstan
dingmofmaccountingmpracticesminmothermnations?
A. Financialmresultsmaremdisclosedminmdifferentmcurrencies.
B. Onemneedsmtombemawaremofmdifferingmdisclosuremrequirementsmfrommnationmtomnation,m
asmthismimpactsmthempreparationmofmfinancialmstatements.
C. Income-
smoothingmmaymhavemaffectedmamforeignmsubsidiary'smresults;msuchmsmoothingmpracti
cesmaremnotmpermittedminmNorthmAmerica.
D. Departuresmfrommthemhistoricalmcostmprinciplemmaymbempossibleminmothermnations.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
2. Whichmofmthemfollowingmwouldmbemmostmaffectedmbymfinancialmstatementsmbeingmpr
eparedmundermdifferentmaccountingmprinciples?
A. Reducedmcomparability.
B. Reducedmreliability.
C. Increasedmcomplexity.
D. Inaccuratemassetmvaluations.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
1-3
, 3. ThemCPAmCanadamHandbookm-
mAccountingmismthemhandbookmofmCanadianmaccountingmstandards.mWhymdomcompanies
minmCanada mensuremthatmtheirmfinancial mreportingmismconsistentmwithmCanadianmGAAP?
A. Theirmbankmrequiresmthemmtomdomso.
B. Theirmauditorsmrequiremthemmtomdomso.
C. ReportingmundermthemCPAmCanadamHandbookm-
mAccountingmismrequiredmbympublicmcompanies'mboardsmofmdirectors.
D. CompliancemwithmthemCPAmCanadamHandbookm-
mAccountingmpronouncementsmis musuallymrequiredmbymmanymlegalmstatutes.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
01mDescribemandmapplymthemconceptualmframeworkmformfinancialmreporting.m Topic:m01-
01mThemConceptualmFrameworkmformFinancialmReporting
4. WhichmdecisionmhasmCanadammademwithmrespectmtomfinancialmreportingmformp
rivatementerprises?
A. TomadoptmthemIFRSmstandardsmformsmallmandmmedium-sizedmenterprises.
B. Tomretainmthemcurrentmstandards.
C. TomlookmtomUSmGAAPmformstandards.
D. Tomdevelopmandmmaintainmitsmownmstandardsmformprivatementerprises.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
02mDescribemhowmaccountingmstandardsminmCanadamaremtailoredmtomdifferentmtypesmofmorganizations.m Topic:m0
1-05mGAAPmformPrivatemEnterprises
5. Startingminm2011,mwhatmismthemdefinitionmofmamprivatementerprisem(PE)mundermCanadianmGAAP?
A. Amcorporationmthatmhasmnompublicmshareholders.
B. Amcorporationmthatmhasmlessmthanm500mshareholdersmandmismnotmlistedmonmamstockmexchange.
C. Amcorporationmwhichmismnotmprofitmoriented.
D. Amprofitmorientedmenterprisemthatmhasmnonemofmitsmissuedmandmoutstandingmfinancialm
instrumentsmtradedminmampublicmmarketmandmdoesmnotmholdmassetsminmamfiduciarymcapaci
tymformambroadmgroupmofmoutsidersmasmonemofmitsmprimarymbusinesses.
Accessibility:mKeyboardmNavigationm Bl
ooms:mRemember
Difficulty:mEasy
LearningmObjective:m01-
02mDescribemhowmaccountingmstandardsminmCanadamaremtailoredmtomdifferentmtypesmofmorganizations.m Topic:m0
1-05mGAAPmformPrivatemEnterprises
1-4
