,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
n n n n n n n n n n n
n Hilton n
MULTIPLEnCHOICE.n Choosen then onenalternativen thatn bestn completesn then statementn orn answersn then question.
1) WhichnofnthenfollowingntypesnofnshareninvestmentndoesnNOTnqualifynasnanstrategicninvestment?
A) Controlledninvestments. B)n JointnControlninvestments.
C)nInvestmentsnwithoutnsignificantninfluence. D)nSignificantninfluenceninvestments.
Answer:n C
2) Ansignificantninfluenceninvestmentnisnonenthat:
A) allowsntheninvestorntonexercisensignificantninfluencenovernthenstrategicnandnoperatingnpoliciesnofnt
henAssociate.
B) allowsntheninvestorntonexercisensignificantninfluencenovernthenstrategicnoperatingnandnfinancingn
policiesnofnthenAssociate.
C) allowsntheninvestorntonexercisensignificantninfluencenovernonlynthenoperatingnpoliciesnofnthen
Associate.
D) allowsntheninvestorntonexercisensignificantninfluencenovernonlynthenfinancingnpoliciesnofnthen
Associate.
Answer:n B
3) Whatnisnthendominantnfactornusedntondistinguishnportfolioninvestmentsnfromnsignificantninfluenceni
nvestments?
A) Thenpercentagenofnequitynheldnbyntheninvestor.
B) UsenofnthenEquitynMethodntonaccountnfornandnreportntheninvestment.
C) Theninvestor'snintentionntonestablishnornmaintainnanlong-
termnoperatingnrelationshipnwithntheninvestee.
D) UsenofnthenCostnMethodntonaccountnfornandnreportntheninvestment.
Answer:n C
4) WhichnofnthenfollowingnstatementsnisnTRUEnundernIFRSn9?
A) OthernComprehensivenIncomen(OCI)nisnincludedninnRetainednEarnings.
B) UnrealizedngainsnandnlossesnonnequityninvestmentsnmaynbenincludedninnOthernComprehensivenI
ncomen(OCI)nonlynifnandecisionntondonsonisnmadenwhenntheninvestmentnisnacquired.
C) AllnunrealizedngainsnandnlossesnonnequityninvestmentsnflownthroughnOthernComprehensivenI
ncomen(OCI).
D) Unrealizedngainsnandnlossesnonnfairnvaluenthroughnprofitnandnlossn(FVTPL)nsecuritiesnareni
ncludedninnOthernComprehensivenIncome.
Answer:n B
5) Gainsnandnlossesnonnfairnvaluenthroughnprofitnornlossn(FVTPL)nsecurities:
A) arenincludedninnnetnincomenonlynwhennrealized.
B) arennevernrecordednuntilnthensecuritiesnarensold.
C) arenincludedninnnetnincome,nregardlessnofnwhetherntheynarenrealizednornnot.
D) arenincludedninnnetnincomenonlynwhenntheninvestmentnhasnbecomenpermanentlynimpaired.
Answer:n C
1
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,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
n n n n n n n n n n n
n Hilton n
6) HownarenrealizedngainsnfromnthensalenofninvestmentsnaccountednfornatnfairnvaluenthroughnOthern
ComprehensivenIncomen(FVTOCI)naccountednfornundernIFRSn9?
A) TheynarentransferredntonRetainednEarningsnwithoutngoingnthroughnnetnincome.
B) Theynarentransferredntonnetnincomeninnthenperiodnofnthensale.
C) TheynremainninnAccumulatednOthernComprehensivenIncome.
D) TheynarentransferredntonContributednSurplus.
Answer:n A
7) Whennusingnthencostnmethodnofnaccounting,nwhichnmethodnshouldnbenusedntondeterminenthencarryingnv
aluenofnsharesnsoldnwhennanportionnofnthensharesnmakingnupnanninvestmentnisnsold?
A) Specificncost. B)n Lastnin,nfirstnout. C)nAveragencost. D)n Firstnin,nfirstnout.
Answer:n C
8) Whatnpercentagenofnownershipnisnusednasnanguidelinentondeterminenthatnsignificantninfluencenexistsnu
ndernIASn28nInvestmentsninnAssociatesnandnJointnVentures?
A) 20%nornmore. B)n Betweenn20%nandn50%.
C) 25%nornmore. D)nLessnthann20%.
Answer:n B
9) Whichnofnthenfollowingnmethodsnusesnproceduresnclosestntonthosenusedninnpreparingnconsolidatednf
inancialnstatements?
A) Fairnvaluenthroughnprofitnornlossn(FVTPL).
B) Thenequitynmethod.
C) Fairnvaluenthroughnotherncomprehensivenincome.
D) Thencostnmethod.
Answer:n B
10) WhichnofnthenfollowingnisnNOTnanpossiblenindicatornofnsignificantninfluence?
A) ThenAssociate'snnewnCEOnwasnpreviouslynCEOnofntheninvestorncompany.
B) TheninvestornhasnthenabilityntonelectnmembersntonthenBoardnofnDirectors.
C) TheninvestornhasnengagedninnnumerousnintercompanyntransactionsnwithnthenAssociate.
D) Theninvestornhasnthenrightntonparticipateninnthenpolicy-makingnprocess.
Answer:n A
11) WhichnofnthenfollowingnstatementsnisnCORRECT?
A) Annownershipninterestnbetweenn0nandn10%ncannnevernimplynsignificantninfluence.
B) Annownershipninterestnbetweenn20%nandn50%nalwaysnimpliesnsignificantninfluence.
C) SignificantninfluencenisnstillnpossiblenifnthenInvestornownsnlessnthann20%nofnthenvotingnsharesnofnt
henAssociate.
D) ControlnisnonlynpossiblenifnthenInvestornownsnmorenthann50%nofnthenvotingnsharesnofnthen
Associate.
Answer:n C
2
nursytestbank.store
, DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
n n n n n n n n n n n
n Hilton n
12) Thendifferencenbetweenntheninvestor'sncostnandntheninvestor'snpercentagenofnthencarryingnvaluenofnthenn
etnidentifiablenassetsnofnthenassociatenisnknownnas:
A) thenAcquisitionnDifferential. B)n Goodwill.
C) thenExcessnBooknValue. D)nthenFairnValuenIncrement.
Answer:n A
13) Anynunallocatednpositivenacquisitionndifferentialnisnnormally:
A) expensednduringnthenyearnfollowingnthenacquisition.
B) chargedntonRetainednEarnings.
C) pro-ratednacrossnthenAssociate'snidentifiablennetnassets.
D) recordednasnGoodwill.
Answer:n D
14) Whennarengainsnonnintercompanyntransfersnofnassetsnbetweennanninvestornandnansignificantninfluencenin
vestmentnrecognizednasnpartnofntheninvestmentnincomenaccountednfornbynthenparentnundernthenequitynme
thod?
A) Theynarennevernrecognized.
B) Innthenperiod(s)nwhennthenassetsnarensoldntonthirdnpartiesnornconsumed.
C) Innthenperiodnwhennthenintercompanyntransferntakesnplace.
D) Theynarenrecognizednonlynwhenntheninvestmentnisnsold.
Answer:n B
15) Then
investmentnmustnbenshownnasnancurrentnasset,nwhereasnthenotherninvestmentsncouldnbenc
n
urrentnornnon-current,ndependingnonnmanagement'snintention.
A) FVTPL B)n costnmethod C)n FVTOCI D)n equitynmethod
Answer:n A
16) Whennanalyzingnandninterpretingnfinancialnstatements,nalthoughnthenreportingnmethodsnshowndifferent
nvaluesnfornliquidity,nsolvency,nandnprofitability,nthenrealneconomicnsituationnisn
nfor
nthenfourndifferentnmethods.
A) completelyndifferent
B) exactlynthensame
C) almostnsimilarnexceptnfornthenfairnvaluenmethods
D) almostnsimilarnexceptnfornthenequitynmethod
Answer:n B
17) ReportinginnaccordancenwithnthenAccountingnStandardsnfornPrivatenEnterprisesn(ASPE)nisnpermittedni
nncertainninstancesnfor:
A) allnCanadianncompanies.
B) privatelynheldncompanies.
C) publiclynheldncompanies.
D) Canadianncompaniesnconsolidatingntheirnforeignnsubsidiaries.
Answer:n B
3
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n n n n n n n n n n n
n Hilton n
MULTIPLEnCHOICE.n Choosen then onenalternativen thatn bestn completesn then statementn orn answersn then question.
1) WhichnofnthenfollowingntypesnofnshareninvestmentndoesnNOTnqualifynasnanstrategicninvestment?
A) Controlledninvestments. B)n JointnControlninvestments.
C)nInvestmentsnwithoutnsignificantninfluence. D)nSignificantninfluenceninvestments.
Answer:n C
2) Ansignificantninfluenceninvestmentnisnonenthat:
A) allowsntheninvestorntonexercisensignificantninfluencenovernthenstrategicnandnoperatingnpoliciesnofnt
henAssociate.
B) allowsntheninvestorntonexercisensignificantninfluencenovernthenstrategicnoperatingnandnfinancingn
policiesnofnthenAssociate.
C) allowsntheninvestorntonexercisensignificantninfluencenovernonlynthenoperatingnpoliciesnofnthen
Associate.
D) allowsntheninvestorntonexercisensignificantninfluencenovernonlynthenfinancingnpoliciesnofnthen
Associate.
Answer:n B
3) Whatnisnthendominantnfactornusedntondistinguishnportfolioninvestmentsnfromnsignificantninfluenceni
nvestments?
A) Thenpercentagenofnequitynheldnbyntheninvestor.
B) UsenofnthenEquitynMethodntonaccountnfornandnreportntheninvestment.
C) Theninvestor'snintentionntonestablishnornmaintainnanlong-
termnoperatingnrelationshipnwithntheninvestee.
D) UsenofnthenCostnMethodntonaccountnfornandnreportntheninvestment.
Answer:n C
4) WhichnofnthenfollowingnstatementsnisnTRUEnundernIFRSn9?
A) OthernComprehensivenIncomen(OCI)nisnincludedninnRetainednEarnings.
B) UnrealizedngainsnandnlossesnonnequityninvestmentsnmaynbenincludedninnOthernComprehensivenI
ncomen(OCI)nonlynifnandecisionntondonsonisnmadenwhenntheninvestmentnisnacquired.
C) AllnunrealizedngainsnandnlossesnonnequityninvestmentsnflownthroughnOthernComprehensivenI
ncomen(OCI).
D) Unrealizedngainsnandnlossesnonnfairnvaluenthroughnprofitnandnlossn(FVTPL)nsecuritiesnareni
ncludedninnOthernComprehensivenIncome.
Answer:n B
5) Gainsnandnlossesnonnfairnvaluenthroughnprofitnornlossn(FVTPL)nsecurities:
A) arenincludedninnnetnincomenonlynwhennrealized.
B) arennevernrecordednuntilnthensecuritiesnarensold.
C) arenincludedninnnetnincome,nregardlessnofnwhetherntheynarenrealizednornnot.
D) arenincludedninnnetnincomenonlynwhenntheninvestmentnhasnbecomenpermanentlynimpaired.
Answer:n C
1
nursytestbank.store
,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
n n n n n n n n n n n
n Hilton n
6) HownarenrealizedngainsnfromnthensalenofninvestmentsnaccountednfornatnfairnvaluenthroughnOthern
ComprehensivenIncomen(FVTOCI)naccountednfornundernIFRSn9?
A) TheynarentransferredntonRetainednEarningsnwithoutngoingnthroughnnetnincome.
B) Theynarentransferredntonnetnincomeninnthenperiodnofnthensale.
C) TheynremainninnAccumulatednOthernComprehensivenIncome.
D) TheynarentransferredntonContributednSurplus.
Answer:n A
7) Whennusingnthencostnmethodnofnaccounting,nwhichnmethodnshouldnbenusedntondeterminenthencarryingnv
aluenofnsharesnsoldnwhennanportionnofnthensharesnmakingnupnanninvestmentnisnsold?
A) Specificncost. B)n Lastnin,nfirstnout. C)nAveragencost. D)n Firstnin,nfirstnout.
Answer:n C
8) Whatnpercentagenofnownershipnisnusednasnanguidelinentondeterminenthatnsignificantninfluencenexistsnu
ndernIASn28nInvestmentsninnAssociatesnandnJointnVentures?
A) 20%nornmore. B)n Betweenn20%nandn50%.
C) 25%nornmore. D)nLessnthann20%.
Answer:n B
9) Whichnofnthenfollowingnmethodsnusesnproceduresnclosestntonthosenusedninnpreparingnconsolidatednf
inancialnstatements?
A) Fairnvaluenthroughnprofitnornlossn(FVTPL).
B) Thenequitynmethod.
C) Fairnvaluenthroughnotherncomprehensivenincome.
D) Thencostnmethod.
Answer:n B
10) WhichnofnthenfollowingnisnNOTnanpossiblenindicatornofnsignificantninfluence?
A) ThenAssociate'snnewnCEOnwasnpreviouslynCEOnofntheninvestorncompany.
B) TheninvestornhasnthenabilityntonelectnmembersntonthenBoardnofnDirectors.
C) TheninvestornhasnengagedninnnumerousnintercompanyntransactionsnwithnthenAssociate.
D) Theninvestornhasnthenrightntonparticipateninnthenpolicy-makingnprocess.
Answer:n A
11) WhichnofnthenfollowingnstatementsnisnCORRECT?
A) Annownershipninterestnbetweenn0nandn10%ncannnevernimplynsignificantninfluence.
B) Annownershipninterestnbetweenn20%nandn50%nalwaysnimpliesnsignificantninfluence.
C) SignificantninfluencenisnstillnpossiblenifnthenInvestornownsnlessnthann20%nofnthenvotingnsharesnofnt
henAssociate.
D) ControlnisnonlynpossiblenifnthenInvestornownsnmorenthann50%nofnthenvotingnsharesnofnthen
Associate.
Answer:n C
2
nursytestbank.store
, DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8th Editio
n n n n n n n n n n n
n Hilton n
12) Thendifferencenbetweenntheninvestor'sncostnandntheninvestor'snpercentagenofnthencarryingnvaluenofnthenn
etnidentifiablenassetsnofnthenassociatenisnknownnas:
A) thenAcquisitionnDifferential. B)n Goodwill.
C) thenExcessnBooknValue. D)nthenFairnValuenIncrement.
Answer:n A
13) Anynunallocatednpositivenacquisitionndifferentialnisnnormally:
A) expensednduringnthenyearnfollowingnthenacquisition.
B) chargedntonRetainednEarnings.
C) pro-ratednacrossnthenAssociate'snidentifiablennetnassets.
D) recordednasnGoodwill.
Answer:n D
14) Whennarengainsnonnintercompanyntransfersnofnassetsnbetweennanninvestornandnansignificantninfluencenin
vestmentnrecognizednasnpartnofntheninvestmentnincomenaccountednfornbynthenparentnundernthenequitynme
thod?
A) Theynarennevernrecognized.
B) Innthenperiod(s)nwhennthenassetsnarensoldntonthirdnpartiesnornconsumed.
C) Innthenperiodnwhennthenintercompanyntransferntakesnplace.
D) Theynarenrecognizednonlynwhenntheninvestmentnisnsold.
Answer:n B
15) Then
investmentnmustnbenshownnasnancurrentnasset,nwhereasnthenotherninvestmentsncouldnbenc
n
urrentnornnon-current,ndependingnonnmanagement'snintention.
A) FVTPL B)n costnmethod C)n FVTOCI D)n equitynmethod
Answer:n A
16) Whennanalyzingnandninterpretingnfinancialnstatements,nalthoughnthenreportingnmethodsnshowndifferent
nvaluesnfornliquidity,nsolvency,nandnprofitability,nthenrealneconomicnsituationnisn
nfor
nthenfourndifferentnmethods.
A) completelyndifferent
B) exactlynthensame
C) almostnsimilarnexceptnfornthenfairnvaluenmethods
D) almostnsimilarnexceptnfornthenequitynmethod
Answer:n B
17) ReportinginnaccordancenwithnthenAccountingnStandardsnfornPrivatenEnterprisesn(ASPE)nisnpermittedni
nncertainninstancesnfor:
A) allnCanadianncompanies.
B) privatelynheldncompanies.
C) publiclynheldncompanies.
D) Canadianncompaniesnconsolidatingntheirnforeignnsubsidiaries.
Answer:n B
3
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