Test Bank for Intermediate Accounting, 18th Edition, by Donald E. Kieso, Jerry J. Weygandt and Terry D. Warfield ISBN NO- ISBN NO- . Chapter 1-23.odf

, CHAPTER 1 m




THE CANADIAN m


FINANCIAL REPORTING ENVIRONMENT
m m




MULTIPLE CHOICE—Conceptual
m


Answer No. Description
d 1. Accountingmcharacteristics.
a 2. Naturemofmfinancialmaccounting.
c 3. Definitionmofmfinancialmaccounting.
a 4. Financialmreportingmentity.
d 5. Efficientmusemofmresources.
d 6. Capitalmallocationmprocess.
c 7. Assessingmmanagementmstewardship.
c 8. Objectives mofmfinancialmreporting.
a 9. RolemofmAcSB.
c 10. Body mresponsiblemformsettingmGAAP.
b 11. Preparationmofmbiasedminformation.
d 12. Parties minstrumentalminmdevelopmentmofmreportingmstandards
.
d 13. Stakeholders minmthemfinancialmreportingmenvironment..
a 14. “Duemprocess”.
d 15. Causes mofmsubprimemlendingmcrisis.
d 16. Managementmbias.
b 17. AdoptionmofmIFRS.
c 18. RolemofmOSC.
d 19. DefinitionmofmGAAP.
b 20. Changingmnaturemofmthemeconomy.
d 21. Exercisemofmprofessionalmjudgement.
c 22. Majormfactors minmthemreportingmenvironment.
a 23. Impactmofmtechnology monmfinancialmreporting.
b 24. Naturemofmthem“BalancedmScorecard”.
a 25. Responsibility mformfinancialmstatements.
d 26. GAAPmformprivatementerprises.
d 27. Reportingmprinciples
b 28. SOX.
a 29 AcSB’s mstandardmsettingmprocess




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1
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,1m-m TestmBankmformIntermediatemAccounting,mNinthmCanadianmEditio
2 n
EXERCISES
Item Description
E1-30 Objectives mofmfinancialmreporting.
E1-31
Rolemofmsecurities mcommissions mandmstock mexchange
s.mE1-32 Usermneeds.
E1-33 Sources mofmGAAP.
E1-34 StandardmSetting.
E1-35 Challenges mfacingmfinancialmreporting.
E1-36 Stakeholders minmthemfinancialmreportingmenvironment.




TestmBank Chapter m
1
Copyrightm©m2010mJohnmWileym&mSonsmCanada,mLtd.m Unauthorizedmcopying,mdistribution,mor mtransmissionmofmthismpagemis m
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, ThemCanadianmFinancialmReportingmEnvironmen 1m-m3
t
MULTIPLE CHOICE—Conceptual
m




1. Themessentialmcharacteristic(s)mofmaccountingmis m(are)
a. communicationmofmfinancialminformationmtominterestedmpersons.
b. communicationmofmfinancialminformationmaboutmeconomic mentities.
c. identification,mmeasurement,mandmcommunicationmofmfinancialminformation.
d. allmofmthese.

2. Financialmaccountingmis mconcernedmwithmthemprocess mthatmculminates min
a. thempreparationmofmfinancialmreports.
b. specializedmreports mforminventory mmanagementmandmcontrol.
c. specializedmreports mformincomemtax mcalculationmandmrecognition.
d. reports monmchanges minmstock mprices mandmfuturemestimates mofmmarketmposition.

3. Financialm accountingm canm bem broadly m definedm as m them aream ofm accountingm thatm prepar
es mfinancialmstatements mtombemused
a by mparties minternalmtomthembusiness menterprisemonly.
b. by minvestors monly.
c. by mparties mbothminternalmandmexternalmtomthembusiness menterprise.
d. primarily mby mmanagement.

4. Theminformationmprovidedmby mfinancialmreportingmpertains mto
a. individualmbusiness menterprises,mrathermthanmtomindustries mormanmeconomymasmamwholem
ormtommembers mofmsociety mas mconsumers.
b. business mindustries,mrathermthanmtomindividualmenterprises mormanmeconomymasmamwholem
ormtommembers mofmsociety mas mconsumers.
c. individualmbusiness menterprises,mindustries,mandmanmeconomy mas mamwhole,mrathermthan
mtommembers mofmsociety mas mconsumers.

d. anm economy m as m am wholem andm tom membersm ofm society m as m consumers,m ratherm than
m tomindividualmenterprises mormindustries.



5. Whethermambusiness mis msuccessfulmandmthrives mis mdeterminedmby
a. freementerprise.
b. competition.
c. markets.
d. allmofmthese.

6. Anmeffectivemcapitalmallocationmprocess
a. encourages minnovation.
b. promotes mproductivity.
c. provides manmefficientmandmliquidmmarketmformbuyingmandmsellingmsecurities.
d. allmofmthese.




TestmBank Chapter m
1
Copyrightm©m2010mJohnmWileym&mSonsmCanada,mLtd.m Unauthorizedmcopying,mdistribution,mor mtransmissionmofmthismpagemis m
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