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f f f f f f f f f f f
n Hilton f
MULTIPLEfCHOICE.f Choosef thef onef alternativef thatf bestf completesf thef statementf orf answersf thef question.
1) WhichfofftheffollowingftypesfoffsharefinvestmentfdoesfNOTfqualifyfasfafstrategicfinvestment?
A) Controlledfinvestments. B)f JointfControlfinvestments.
C)fInvestmentsfwithoutfsignificantfinfluence. D)fSignificantfinfluencefinvestments.
Answer:f C
2) Afsignificantfinfluencefinvestmentfisfonefthat:
A) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfthefstrategicfandfoperatingfpoliciesfoffthef
Associate.
B) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfthefstrategicfoperatingfandffinancingfpol
iciesfoffthefAssociate.
C) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfonlyfthefoperatingfpoliciesfoffthefAss
ociate.
D) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfonlyftheffinancingfpoliciesfoffthefAss
ociate.
Answer:f B
3) Whatfisfthefdominantffactorfusedftofdistinguishfportfoliofinvestmentsffromfsignificantfinfluencefinv
estments?
A) Thefpercentagefoffequityfheldfbyfthefinvestor.
B) UsefoffthefEquityfMethodftofaccountfforfandfreportfthefinvestment.
C) Thefinvestor'sfintentionftofestablishforfmaintainfaflong-
termfoperatingfrelationshipfwithfthefinvestee.
D) UsefoffthefCostfMethodftofaccountfforfandfreportfthefinvestment.
Answer:f C
4) WhichfofftheffollowingfstatementsfisfTRUEfunderfIFRSf9?
A) OtherfComprehensivefIncomef(OCI)fisfincludedfinfRetainedfEarnings.
B) UnrealizedfgainsfandflossesfonfequityfinvestmentsfmayfbefincludedfinfOtherfComprehensivefInc
omef(OCI)fonlyfiffafdecisionftofdofsofisfmadefwhenfthefinvestmentfisfacquired.
C) AllfunrealizedfgainsfandflossesfonfequityfinvestmentsfflowfthroughfOtherfComprehensivefIn
comef(OCI).
D) Unrealizedfgainsfandflossesfonffairfvaluefthroughfprofitfandflossf(FVTPL)fsecuritiesfarefinc
ludedfinfOtherfComprehensivefIncome.
Answer:f B
5) Gainsfandflossesfonffairfvaluefthroughfprofitforflossf(FVTPL)fsecurities:
A) arefincludedfinfnetfincomefonlyfwhenfrealized.
B) arefneverfrecordedfuntilfthefsecuritiesfarefsold.
C) arefincludedfinfnetfincome,fregardlessfoffwhetherftheyfarefrealizedforfnot.
D) arefincludedfinfnetfincomefonlyfwhenfthefinvestmentfhasfbecomefpermanentlyfimpaired.
Answer:f C
1
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,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
f f f f f f f f f f f
n Hilton f
6) HowfarefrealizedfgainsffromfthefsalefoffinvestmentsfaccountedfforfatffairfvaluefthroughfOtherfCo
mprehensivefIncomef(FVTOCI)faccountedfforfunderfIFRSf9?
A) TheyfareftransferredftofRetainedfEarningsfwithoutfgoingfthroughfnetfincome.
B) Theyfareftransferredftofnetfincomefinfthefperiodfoffthefsale.
C) TheyfremainfinfAccumulatedfOtherfComprehensivefIncome.
D) TheyfareftransferredftofContributedfSurplus.
Answer:f A
7) Whenfusingfthefcostfmethodfoffaccounting,fwhichfmethodfshouldfbefusedftofdeterminefthefcarryingfval
uefoffsharesfsoldfwhenfafportionfoffthefsharesfmakingfupfanfinvestmentfisfsold?
A) Specificfcost. B)f Lastfin,ffirstfout. C)fAveragefcost. D)fFirstfin,ffirstfout.
Answer:f C
8) Whatfpercentagefoffownershipfisfusedfasfafguidelineftofdeterminefthatfsignificantfinfluencefexistsfund
erfIASf28fInvestmentsfinfAssociatesfandfJointfVentures?
A) 20%forfmore. B)f Betweenf20%fandf50%.
C) 25%forfmore. D)fLessfthanf20%.
Answer:f B
9) Whichfofftheffollowingfmethodsfusesfproceduresfclosestftofthosefusedfinfpreparingfconsolidatedffin
ancialfstatements?
A) Fairfvaluefthroughfprofitforflossf(FVTPL).
B) Thefequityfmethod.
C) Fairfvaluefthroughfotherfcomprehensivefincome.
D) Thefcostfmethod.
Answer:f B
10) WhichfofftheffollowingfisfNOTfafpossiblefindicatorfoffsignificantfinfluence?
A) ThefAssociate'sfnewfCEOfwasfpreviouslyfCEOfoffthefinvestorfcompany.
B) ThefinvestorfhasfthefabilityftofelectfmembersftofthefBoardfoffDirectors.
C) ThefinvestorfhasfengagedfinfnumerousfintercompanyftransactionsfwithfthefAssociate.
D) Thefinvestorfhasfthefrightftofparticipatefinfthefpolicy-makingfprocess.
Answer:f A
11) WhichfofftheffollowingfstatementsfisfCORRECT?
A) Anfownershipfinterestfbetweenf0fandf10%fcanfneverfimplyfsignificantfinfluence.
B) Anfownershipfinterestfbetweenf20%fandf50%falwaysfimpliesfsignificantfinfluence.
C) SignificantfinfluencefisfstillfpossiblefiffthefInvestorfownsflessfthanf20%foffthefvotingfsharesfoffthef
Associate.
D) ControlfisfonlyfpossiblefiffthefInvestorfownsfmorefthanf50%foffthefvotingfsharesfoffthefAss
ociate.
Answer:f C
2
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, DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
f f f f f f f f f f f
n Hilton f
12) Thefdifferencefbetweenfthefinvestor'sfcostfandfthefinvestor'sfpercentagefoffthefcarryingfvaluefoffthefnetfi
dentifiablefassetsfoffthefassociatefisfknownfas:
A) thefAcquisitionfDifferential. B)f Goodwill.
C) thefExcessfBookfValue. D)fthefFairfValuefIncrement.
Answer:f A
13) Anyfunallocatedfpositivefacquisitionfdifferentialfisfnormally:
A) expensedfduringfthefyearffollowingfthefacquisition.
B) chargedftofRetainedfEarnings.
C) pro-ratedfacrossfthefAssociate'sfidentifiablefnetfassets.
D) recordedfasfGoodwill.
Answer:f D
14) Whenfarefgainsfonfintercompanyftransfersfoffassetsfbetweenfanfinvestorfandfafsignificantfinfluencefinve
stmentfrecognizedfasfpartfoffthefinvestmentfincomefaccountedfforfbyfthefparentfunderfthefequityfmethod?
A) Theyfarefneverfrecognized.
B) Infthefperiod(s)fwhenfthefassetsfarefsoldftofthirdfpartiesforfconsumed.
C) Infthefperiodfwhenfthefintercompanyftransferftakesfplace.
D) Theyfarefrecognizedfonlyfwhenfthefinvestmentfisfsold.
Answer:f B
15) Thef
investmentfmustfbefshownfasfafcurrentfasset,fwhereasfthefotherfinvestmentsfcouldfbefcur
f
rentforfnon-current,fdependingfonfmanagement'sfintention.
A) FVTPL B)f costfmethod C)fFVTOCI D)fequityfmethod
Answer:f A
16) Whenfanalyzingfandfinterpretingffinancialfstatements,falthoughfthefreportingfmethodsfshowfdifferentfv
aluesfforfliquidity,fsolvency,fandfprofitability,fthefrealfeconomicfsituationfisf
fforf
theffourfdifferentfmethods.
A) completelyfdifferent
B) exactlyfthefsame
C) almostfsimilarfexceptfforftheffairfvaluefmethods
D) almostfsimilarfexceptfforfthefequityfmethod
Answer:f B
17) ReportinginfaccordancefwithfthefAccountingfStandardsfforfPrivatefEnterprisesf(ASPE)fisfpermittedfinf
certainfinstancesffor:
A) allfCanadianfcompanies.
B) privatelyfheldfcompanies.
C) publiclyfheldfcompanies.
D) Canadianfcompaniesfconsolidatingftheirfforeignfsubsidiaries.
Answer:f B
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f f f f f f f f f f f
n Hilton f
MULTIPLEfCHOICE.f Choosef thef onef alternativef thatf bestf completesf thef statementf orf answersf thef question.
1) WhichfofftheffollowingftypesfoffsharefinvestmentfdoesfNOTfqualifyfasfafstrategicfinvestment?
A) Controlledfinvestments. B)f JointfControlfinvestments.
C)fInvestmentsfwithoutfsignificantfinfluence. D)fSignificantfinfluencefinvestments.
Answer:f C
2) Afsignificantfinfluencefinvestmentfisfonefthat:
A) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfthefstrategicfandfoperatingfpoliciesfoffthef
Associate.
B) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfthefstrategicfoperatingfandffinancingfpol
iciesfoffthefAssociate.
C) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfonlyfthefoperatingfpoliciesfoffthefAss
ociate.
D) allowsfthefinvestorftofexercisefsignificantfinfluencefoverfonlyftheffinancingfpoliciesfoffthefAss
ociate.
Answer:f B
3) Whatfisfthefdominantffactorfusedftofdistinguishfportfoliofinvestmentsffromfsignificantfinfluencefinv
estments?
A) Thefpercentagefoffequityfheldfbyfthefinvestor.
B) UsefoffthefEquityfMethodftofaccountfforfandfreportfthefinvestment.
C) Thefinvestor'sfintentionftofestablishforfmaintainfaflong-
termfoperatingfrelationshipfwithfthefinvestee.
D) UsefoffthefCostfMethodftofaccountfforfandfreportfthefinvestment.
Answer:f C
4) WhichfofftheffollowingfstatementsfisfTRUEfunderfIFRSf9?
A) OtherfComprehensivefIncomef(OCI)fisfincludedfinfRetainedfEarnings.
B) UnrealizedfgainsfandflossesfonfequityfinvestmentsfmayfbefincludedfinfOtherfComprehensivefInc
omef(OCI)fonlyfiffafdecisionftofdofsofisfmadefwhenfthefinvestmentfisfacquired.
C) AllfunrealizedfgainsfandflossesfonfequityfinvestmentsfflowfthroughfOtherfComprehensivefIn
comef(OCI).
D) Unrealizedfgainsfandflossesfonffairfvaluefthroughfprofitfandflossf(FVTPL)fsecuritiesfarefinc
ludedfinfOtherfComprehensivefIncome.
Answer:f B
5) Gainsfandflossesfonffairfvaluefthroughfprofitforflossf(FVTPL)fsecurities:
A) arefincludedfinfnetfincomefonlyfwhenfrealized.
B) arefneverfrecordedfuntilfthefsecuritiesfarefsold.
C) arefincludedfinfnetfincome,fregardlessfoffwhetherftheyfarefrealizedforfnot.
D) arefincludedfinfnetfincomefonlyfwhenfthefinvestmentfhasfbecomefpermanentlyfimpaired.
Answer:f C
1
nursytestbank.store
,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
f f f f f f f f f f f
n Hilton f
6) HowfarefrealizedfgainsffromfthefsalefoffinvestmentsfaccountedfforfatffairfvaluefthroughfOtherfCo
mprehensivefIncomef(FVTOCI)faccountedfforfunderfIFRSf9?
A) TheyfareftransferredftofRetainedfEarningsfwithoutfgoingfthroughfnetfincome.
B) Theyfareftransferredftofnetfincomefinfthefperiodfoffthefsale.
C) TheyfremainfinfAccumulatedfOtherfComprehensivefIncome.
D) TheyfareftransferredftofContributedfSurplus.
Answer:f A
7) Whenfusingfthefcostfmethodfoffaccounting,fwhichfmethodfshouldfbefusedftofdeterminefthefcarryingfval
uefoffsharesfsoldfwhenfafportionfoffthefsharesfmakingfupfanfinvestmentfisfsold?
A) Specificfcost. B)f Lastfin,ffirstfout. C)fAveragefcost. D)fFirstfin,ffirstfout.
Answer:f C
8) Whatfpercentagefoffownershipfisfusedfasfafguidelineftofdeterminefthatfsignificantfinfluencefexistsfund
erfIASf28fInvestmentsfinfAssociatesfandfJointfVentures?
A) 20%forfmore. B)f Betweenf20%fandf50%.
C) 25%forfmore. D)fLessfthanf20%.
Answer:f B
9) Whichfofftheffollowingfmethodsfusesfproceduresfclosestftofthosefusedfinfpreparingfconsolidatedffin
ancialfstatements?
A) Fairfvaluefthroughfprofitforflossf(FVTPL).
B) Thefequityfmethod.
C) Fairfvaluefthroughfotherfcomprehensivefincome.
D) Thefcostfmethod.
Answer:f B
10) WhichfofftheffollowingfisfNOTfafpossiblefindicatorfoffsignificantfinfluence?
A) ThefAssociate'sfnewfCEOfwasfpreviouslyfCEOfoffthefinvestorfcompany.
B) ThefinvestorfhasfthefabilityftofelectfmembersftofthefBoardfoffDirectors.
C) ThefinvestorfhasfengagedfinfnumerousfintercompanyftransactionsfwithfthefAssociate.
D) Thefinvestorfhasfthefrightftofparticipatefinfthefpolicy-makingfprocess.
Answer:f A
11) WhichfofftheffollowingfstatementsfisfCORRECT?
A) Anfownershipfinterestfbetweenf0fandf10%fcanfneverfimplyfsignificantfinfluence.
B) Anfownershipfinterestfbetweenf20%fandf50%falwaysfimpliesfsignificantfinfluence.
C) SignificantfinfluencefisfstillfpossiblefiffthefInvestorfownsflessfthanf20%foffthefvotingfsharesfoffthef
Associate.
D) ControlfisfonlyfpossiblefiffthefInvestorfownsfmorefthanf50%foffthefvotingfsharesfoffthefAss
ociate.
Answer:f C
2
nursytestbank.store
, DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
f f f f f f f f f f f
n Hilton f
12) Thefdifferencefbetweenfthefinvestor'sfcostfandfthefinvestor'sfpercentagefoffthefcarryingfvaluefoffthefnetfi
dentifiablefassetsfoffthefassociatefisfknownfas:
A) thefAcquisitionfDifferential. B)f Goodwill.
C) thefExcessfBookfValue. D)fthefFairfValuefIncrement.
Answer:f A
13) Anyfunallocatedfpositivefacquisitionfdifferentialfisfnormally:
A) expensedfduringfthefyearffollowingfthefacquisition.
B) chargedftofRetainedfEarnings.
C) pro-ratedfacrossfthefAssociate'sfidentifiablefnetfassets.
D) recordedfasfGoodwill.
Answer:f D
14) Whenfarefgainsfonfintercompanyftransfersfoffassetsfbetweenfanfinvestorfandfafsignificantfinfluencefinve
stmentfrecognizedfasfpartfoffthefinvestmentfincomefaccountedfforfbyfthefparentfunderfthefequityfmethod?
A) Theyfarefneverfrecognized.
B) Infthefperiod(s)fwhenfthefassetsfarefsoldftofthirdfpartiesforfconsumed.
C) Infthefperiodfwhenfthefintercompanyftransferftakesfplace.
D) Theyfarefrecognizedfonlyfwhenfthefinvestmentfisfsold.
Answer:f B
15) Thef
investmentfmustfbefshownfasfafcurrentfasset,fwhereasfthefotherfinvestmentsfcouldfbefcur
f
rentforfnon-current,fdependingfonfmanagement'sfintention.
A) FVTPL B)f costfmethod C)fFVTOCI D)fequityfmethod
Answer:f A
16) Whenfanalyzingfandfinterpretingffinancialfstatements,falthoughfthefreportingfmethodsfshowfdifferentfv
aluesfforfliquidity,fsolvency,fandfprofitability,fthefrealfeconomicfsituationfisf
fforf
theffourfdifferentfmethods.
A) completelyfdifferent
B) exactlyfthefsame
C) almostfsimilarfexceptfforftheffairfvaluefmethods
D) almostfsimilarfexceptfforfthefequityfmethod
Answer:f B
17) ReportinginfaccordancefwithfthefAccountingfStandardsfforfPrivatefEnterprisesf(ASPE)fisfpermittedfinf
certainfinstancesffor:
A) allfCanadianfcompanies.
B) privatelyfheldfcompanies.
C) publiclyfheldfcompanies.
D) Canadianfcompaniesfconsolidatingftheirfforeignfsubsidiaries.
Answer:f B
3
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