TEST BANK for Modern Advanced Acc
t t t t t
ounting in Canada 9th Edition Hilton
t t t t t t
Murray,Herauf Darrell
t
t
t
t
,TEST BANK for Modern Advanced Accounting in Canada 9th Edition Hilton Murray,Her
t t t t t t t t t t t t
uf Darrell
t
Chapter 01 t t
Conceptual and Case Analysis Frameworks for Financial Reporting
t t t t t t t
MultipletChoicetQuestions
1. WhichtoftthetfollowingtwouldtNOTtbetatreasonttotobtaintatgreatertunderstandingtoftacco
untingtpracticestintothertnations?
A. Financialtresultstaretdisclosedtintdifferenttcurrencies.
B. Onetneedsttotbetawaretoftdifferingtdisclosuretrequirementstfromtnationttotnation,tastthistimp
actstthetpreparationtoftfinancialtstatements.
C. Income-
smoothingtmaythavetaffectedtatforeigntsubsidiary'stresults;tsuchtsmoothingtpracticestaretn
ottpermittedtintNorthtAmerica.
D. Departurestfromtthethistoricaltcosttprincipletmaytbetpossibletintothertnations.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
2. Whichtoftthetfollowingtwouldtbetmosttaffectedtbytfinancialtstatementstbeingtpreparedtund
ertdifferentt accountingtprinciples?
A. Reducedtcomparability.
B. Reducedtreliability.
C. Increasedtcomplexity.
D. Inaccuratetassettvaluations.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
1-1
,3. ThetCPAtCanadatHandbookt-
tAccountingtistthethandbooktoftCanadiantaccountingtstandards.tWhytdot companiestintCanad
atensuretthatttheirtfinancialtreportingtistconsistenttwithtCanadiantGAAP?
A. Theirtbanktrequirestthemttotdotso.
B. Theirtauditorstrequiretthemttotdotso.
C. ReportingtundertthetCPAtCanadatHandbookt-
tAccountingtistrequiredtbytpublictcompanies'tboardst oftdirectors.
D. CompliancetwithtthetCPAtCanadatHandbookt-
tAccountingtpronouncementstistusuallytrequiredtbyt manytlegaltstatutes.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
4. WhichtdecisionthastCanadatmadetwithtrespectttotfinancialtreportingtfortprivatetent
erprises?
A. TotadopttthetIFRStstandardstfortsmalltandtmedium-sizedtenterprises.
B. Totretaintthetcurrenttstandards.
C. TotlookttotUStGAAPtfortstandards.
D. Totdeveloptandtmaintaintitstowntstandardstfortprivatetenterprises.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
5. Startingtint2011,twhatt istthetdefinitiontoftatprivatetenterpriset(PE)tundertCanadiantGAAP?
A. Atcorporationtthatthastnotpublictshareholders.
B. Atcorporationtthatthastlesstthant500tshareholderstandtistnottlistedtontatstocktexchange.
C. Atcorporationtwhichtistnottprofittoriented.
D. Atprofittorientedtenterprisetthatthastnonetoftitstissuedtandtoutstandingtfinancialtinstrument
sttradedtintatpublictmarkettandtdoestnottholdtassetstintatfiduciarytcapacitytfortatbroadtgrouptofto
utsiderstastonetoftitstprimarytbusinesses.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
1-2
, 6. WhichtenterprisestmusttreporttundertIFRStintCanada?
A. Alltcorporations,tgovernmenttagenciestandtprivatetcompanies.
B. Publictcompaniestandtprivatetcompaniestwhosetshareholders'tequitytistintexcesstof
$500,000,000tattanytparticulart yeartend.
C. Publictcompanies,tprivatetcompaniestandtnot-for-profittorganizations.
D. Publiclytaccountabletenterprises.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
04tGAAPtfort Publiclyt AccountabletEnterprises
7. WhattapproachtdidtCanadatfirsttdecidettottaketwithtrespectttotconvergencetwithtIFRS?
A. HarmonizationtoftCPAtCanadatHandbooktwithtIFRS.
B. SubstitutingtIFRStfortCanadiantGAAPtwhentapprovedtbytthetIASB.
C. AdoptingtsometbuttnottnecessarilytalltIFRSstbytreviewingtthemtontatcasetbytcasetbasis.
D. Reviewingtthemtwithtalltpublicallytaccountabletentitiesttotseetwhichtonestwouldtbetacc
eptable.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
04tGAAPtfort Publiclyt AccountabletEnterprises
8. Whattchoice(s)tdotprivatetenterprisesthavetinttheirtfinancialtreportingtintCanada?
A. Theythavetnotchoicetattall;ttheytwilltneedttotreportt undertIFRS.
B. Theytmaytelectttotcontinuetwithtdifferentialtreporting.
C. Theytmaytadopttaccountingtprinciplestthattaretappropriatettotthetcircumstances.
D. TheytmaytelectttotreporttunderteithertIFRStortASPEtbuttoncetadopted,tmusttusetalltthetstand
ards.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
1-3
t t t t t
ounting in Canada 9th Edition Hilton
t t t t t t
Murray,Herauf Darrell
t
t
t
t
,TEST BANK for Modern Advanced Accounting in Canada 9th Edition Hilton Murray,Her
t t t t t t t t t t t t
uf Darrell
t
Chapter 01 t t
Conceptual and Case Analysis Frameworks for Financial Reporting
t t t t t t t
MultipletChoicetQuestions
1. WhichtoftthetfollowingtwouldtNOTtbetatreasonttotobtaintatgreatertunderstandingtoftacco
untingtpracticestintothertnations?
A. Financialtresultstaretdisclosedtintdifferenttcurrencies.
B. Onetneedsttotbetawaretoftdifferingtdisclosuretrequirementstfromtnationttotnation,tastthistimp
actstthetpreparationtoftfinancialtstatements.
C. Income-
smoothingtmaythavetaffectedtatforeigntsubsidiary'stresults;tsuchtsmoothingtpracticestaretn
ottpermittedtintNorthtAmerica.
D. Departurestfromtthethistoricaltcosttprincipletmaytbetpossibletintothertnations.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
2. Whichtoftthetfollowingtwouldtbetmosttaffectedtbytfinancialtstatementstbeingtpreparedtund
ertdifferentt accountingtprinciples?
A. Reducedtcomparability.
B. Reducedtreliability.
C. Increasedtcomplexity.
D. Inaccuratetassettvaluations.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
1-1
,3. ThetCPAtCanadatHandbookt-
tAccountingtistthethandbooktoftCanadiantaccountingtstandards.tWhytdot companiestintCanad
atensuretthatttheirtfinancialtreportingtistconsistenttwithtCanadiantGAAP?
A. Theirtbanktrequirestthemttotdotso.
B. Theirtauditorstrequiretthemttotdotso.
C. ReportingtundertthetCPAtCanadatHandbookt-
tAccountingtistrequiredtbytpublictcompanies'tboardst oftdirectors.
D. CompliancetwithtthetCPAtCanadatHandbookt-
tAccountingtpronouncementstistusuallytrequiredtbyt manytlegaltstatutes.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
01tDescribetandtapplytthetconceptualtframeworktfortfinancialtreporting.tTopic:t01-
01tThetConceptualtFrameworktfortFinancialtReporting
4. WhichtdecisionthastCanadatmadetwithtrespectttotfinancialtreportingtfortprivatetent
erprises?
A. TotadopttthetIFRStstandardstfortsmalltandtmedium-sizedtenterprises.
B. Totretaintthetcurrenttstandards.
C. TotlookttotUStGAAPtfortstandards.
D. Totdeveloptandtmaintaintitstowntstandardstfortprivatetenterprises.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
5. Startingtint2011,twhatt istthetdefinitiontoftatprivatetenterpriset(PE)tundertCanadiantGAAP?
A. Atcorporationtthatthastnotpublictshareholders.
B. Atcorporationtthatthastlesstthant500tshareholderstandtistnottlistedtontatstocktexchange.
C. Atcorporationtwhichtistnottprofittoriented.
D. Atprofittorientedtenterprisetthatthastnonetoftitstissuedtandtoutstandingtfinancialtinstrument
sttradedtintatpublictmarkettandtdoestnottholdtassetstintatfiduciarytcapacitytfortatbroadtgrouptofto
utsiderstastonetoftitstprimarytbusinesses.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
1-2
, 6. WhichtenterprisestmusttreporttundertIFRStintCanada?
A. Alltcorporations,tgovernmenttagenciestandtprivatetcompanies.
B. Publictcompaniestandtprivatetcompaniestwhosetshareholders'tequitytistintexcesstof
$500,000,000tattanytparticulart yeartend.
C. Publictcompanies,tprivatetcompaniestandtnot-for-profittorganizations.
D. Publiclytaccountabletenterprises.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
04tGAAPtfort Publiclyt AccountabletEnterprises
7. WhattapproachtdidtCanadatfirsttdecidettottaketwithtrespectttotconvergencetwithtIFRS?
A. HarmonizationtoftCPAtCanadatHandbooktwithtIFRS.
B. SubstitutingtIFRStfortCanadiantGAAPtwhentapprovedtbytthetIASB.
C. AdoptingtsometbuttnottnecessarilytalltIFRSstbytreviewingtthemtontatcasetbytcasetbasis.
D. Reviewingtthemtwithtalltpublicallytaccountabletentitiesttotseetwhichtonestwouldtbetacc
eptable.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
04tGAAPtfort Publiclyt AccountabletEnterprises
8. Whattchoice(s)tdotprivatetenterprisesthavetinttheirtfinancialtreportingtintCanada?
A. Theythavetnotchoicetattall;ttheytwilltneedttotreportt undertIFRS.
B. Theytmaytelectttotcontinuetwithtdifferentialtreporting.
C. Theytmaytadopttaccountingtprinciplestthattaretappropriatettotthetcircumstances.
D. TheytmaytelectttotreporttunderteithertIFRStortASPEtbuttoncetadopted,tmusttusetalltthetstand
ards.
Accessibility:tKeyboardtNavigationt
Blooms:tRemember
Difficulty:tEasy
LearningtObjective:t01-
02tDescribethowtaccountingtstandardstintCanadatarettailoredttotdifferentttypestoftorganizations.tTopic:t01-
05tGAAPtfortPrivatetEnterprises
1-3
