TEST BANK for Modern Advanced Accounting in Canada 13th Edition by Hilton Murray, Herauf Darrell All chapters 1-12 fully covered

TEST BANK for Modern Advanced Acc
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ounting in Canada 9th Edition Hilton
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Murray,Herauf Darrell
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,TEST BANK for Modern Advanced Accounting in Canada 9th Edition Hilton Murray,Her
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Chapter 01 f f


Conceptual and Case Analysis Frameworks for Financial Reporting
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MultiplefChoicefQuestions


1. WhichfofftheffollowingfwouldfNOTfbefafreasonftofobtainfafgreaterfunderstandingfoffacc
ountingfpracticesfinfotherfnations?
A. Financialfresultsfarefdisclosedfinfdifferentfcurrencies.
B. Onefneedsftofbefawarefoffdifferingfdisclosurefrequirementsffromfnationftofnation,fasfthisfimp
actsfthefpreparationfofffinancialfstatements.
C. Income-
smoothingfmayfhavefaffectedfafforeignfsubsidiary'sfresults;fsuchfsmoothingfpracticesfarefn
otfpermittedfinfNorthfAmerica.
D. Departuresffromfthefhistoricalfcostfprinciplefmayfbefpossiblefinfotherfnations.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
01fDescribefandfapplyfthefconceptualfframeworkfforffinancialfreporting.fTopic:f01-
01fThefConceptualfFrameworkfforfFinancialfReporting



2. Whichfofftheffollowingfwouldfbefmostfaffectedfbyffinancialfstatementsfbeingfpreparedfun
derfdifferentf accountingfprinciples?
A. Reducedfcomparability.
B. Reducedfreliability.
C. Increasedfcomplexity.
D. Inaccuratefassetfvaluations.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
01fDescribefandfapplyfthefconceptualfframeworkfforffinancialfreporting.fTopic:f01-
01fThefConceptualfFrameworkfforfFinancialfReporting




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,3. ThefCPAfCanadafHandbookf-
fAccountingfisfthefhandbookfoffCanadianfaccountingfstandards.fWhyfdofcompaniesfinfCanad

afensurefthatftheirffinancialfreportingfisfconsistentfwithfCanadianfGAAP?
A. Theirfbankfrequiresfthemftofdofso.
B. Theirfauditorsfrequirefthemftofdofso.
C. ReportingfunderfthefCPAfCanadafHandbookf-
fAccountingfisfrequiredfbyfpublicfcompanies'fboardsfoffdirectors.

D. CompliancefwithfthefCPAfCanadafHandbookf-
fAccountingfpronouncementsfisfusuallyfrequiredfbyf manyflegal fstatutes.




Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
01fDescribefandfapplyfthefconceptualfframeworkfforffinancialfreporting.fTopic:f01-
01fThefConceptualfFrameworkfforfFinancialfReporting



4. WhichfdecisionfhasfCanadafmadefwithfrespectftoffinancialfreportingfforfprivatefent
erprises?
A. TofadoptfthefIFRSfstandardsfforfsmallfandfmedium-sizedfenterprises.
B. Tofretainfthefcurrentfstandards.
C. ToflookftofUSfGAAPfforfstandards.
D. Tofdevelopfandfmaintainfitsfownfstandardsfforfprivatefenterprises.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
02fDescribefhowfaccountingfstandardsfinfCanadafareftailoredftofdifferentftypesfofforganizations.fTopic:f01-
05fGAAPfforfPrivatefEnterprises

5. Startingfinf2011,fwhatfisfthefdefinitionfoffafprivatefenterprisef(PE)funderfCanadianfGAAP?
A. Afcorporationfthatfhasfnofpublicfshareholders.
B. Afcorporationfthatfhasflessfthanf500fshareholdersfandfisfnotflistedfonfafstockfexchange.
C. Afcorporationfwhichfisfnotfprofitforiented.
D. Afprofitforientedfenterprisefthatfhasfnonefoffitsfissuedfandfoutstandingffinancialfinstrumen
tsftradedfinfafpublicfmarketfandfdoesfnotfholdfassetsfinfaffiduciaryfcapacityfforfafbroadfgroupfoff
outsidersfasfonefoffitsfprimaryfbusinesses.

Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
02fDescribefhowfaccountingfstandardsfinfCanadafareftailoredftofdifferentftypesfofforganizations.fTopic:f01-
05fGAAPfforfPrivatefEnterprises




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, 6. WhichfenterprisesfmustfreportfunderfIFRSfinfCanada?
A. Allfcorporations,fgovernmentfagenciesfandfprivatefcompanies.
B. Publicfcompaniesfandfprivatefcompaniesfwhosefshareholders'fequityfisfinfexcessfof
$500,000,000fatfanyfparticularf yearfend.
C. Publicfcompanies,fprivatefcompaniesfandfnot-for-profitforganizations.
D. Publiclyfaccountablefenterprises.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
02fDescribefhowfaccountingfstandardsfinfCanadafareftailoredftofdifferentftypesfofforganizations.fTopic:f01-
04fGAAPfforf Publiclyf AccountablefEnterprises



7. WhatfapproachfdidfCanadaffirstfdecideftoftakefwithfrespectftofconvergencefwithfIFRS?
A. HarmonizationfoffCPAfCanadafHandbookfwithfIFRS.
B. SubstitutingfIFRSfforfCanadianfGAAPfwhenfapprovedfbyfthefIASB.
C. AdoptingfsomefbutfnotfnecessarilyfallfIFRSsfbyfreviewingfthemfonfafcasefbyfcasefbasis.
D. Reviewingfthemfwithfallfpublicallyfaccountablefentitiesftofseefwhichfonesfwouldfbefacc
eptable.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
02fDescribefhowfaccountingfstandardsfinfCanadafareftailoredftofdifferentftypesfofforganizations.fTopic:f01-
04fGAAPfforf Publiclyf AccountablefEnterprises



8. Whatfchoice(s)fdofprivatefenterprisesfhavefinftheirffinancialfreportingfinfCanada?
A. Theyfhavefnofchoicefatfall;ftheyfwillfneedftofreportfunderfIFRS.
B. Theyfmayfelectftofcontinuefwithfdifferentialfreporting.
C. Theyfmayfadoptfaccountingfprinciplesfthatfarefappropriateftofthefcircumstances.
D. TheyfmayfelectftofreportfunderfeitherfIFRSforfASPEfbutfoncefadopted,fmustfusefallfthefstan
dards.


Accessibility:fKeyboardfNavigationf
Blooms:fRemember
Difficulty:fEasy
LearningfObjective:f01-
02fDescribefhowfaccountingfstandardsfinfCanadafareftailoredftofdifferentftypesfofforganizations.fTopic:f01-
05fGAAPfforfPrivatefEnterprises




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