, CHAPTER 1 n
THE CANADIAN n
FINANCIAL REPORTING ENVIRONMENT
n n
MULTIPLE CHOICE—Conceptual
n
Answer No. Description
d 1. Accountingncharacteristics.
a 2. Naturenofnfinancialnaccounting.
c 3. Definitionnofnfinancialnaccounting.
a 4. Financialnreportingnentity.
d 5. Efficientnusenofnresources.
d 6. Capitalnallocationnprocess.
c 7. Assessingnmanagementnstewardship.
c 8. Objectivesnofnfinancialnreporting.
a 9. RolenofnAcSB.
c 10. BodynresponsiblenfornsettingnGAAP.
b 11. Preparationnofnbiasedninformation.
d 12. Partiesninstrumentalninndevelopmentnofnreportingnstandards.
d 13. Stakeholdersninnthenfinancialnreportingnenvironment..
a 14. “Duenprocess”.
d 15. Causesnofnsubprimenlendingncrisis.
d 16. Managementnbias.
b 17. AdoptionnofnIFRS.
c 18. RolenofnOSC.
d 19. DefinitionnofnGAAP.
b 20. Changingnnaturenofntheneconomy.
d 21. Exercisenofnprofessionalnjudgement.
c 22. Majornfactorsninnthenreportingnenvironment.
a 23. Impactnofntechnologynonnfinancialnreporting.
b 24. Naturenofnthen“BalancednScorecard”.
a 25. Responsibilitynfornfinancialnstatements.
d 26. GAAPnfornprivatenenterprises.
d 27. Reportingnprinciples
b 28. SOX.
a 29 AcSB’snstandardnsettingnprocess
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
,1n-n2 TestnBanknfornIntermediatenAccounting,nNinthnCanadiannEdition
EXERCISES
Item Description
E1-30 Objectivesnofnfinancialnreporting.
E1-31
Rolenofnsecuritiesncommissionsnandnstocknexchanges.n
E1-32 Usernneeds.
E1-33 SourcesnofnGAAP.
E1-34 StandardnSetting.
E1-35 Challengesnfacingnfinancialnreporting.
E1-36 Stakeholdersninnthenfinancialnreportingnenvironment.
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
, ThenCanadiannFinancialnReportingnEnvironment 1n-n3
MULTIPLE CHOICE—Conceptual
n
1. Thenessentialncharacteristic(s)nofnaccountingnisn(are)
a. communicationnofnfinancialninformationntoninterestednpersons.
b. communicationnofnfinancialninformationnaboutneconomicnentities.
c. identification,nmeasurement,nandncommunicationnofnfinancialninformation.
d. allnofnthese.
2. Financialnaccountingnisnconcernednwithnthenprocessnthatnculminatesnin
a. thenpreparationnofnfinancialnreports.
b. specializednreportsnforninventorynmanagementnandncontrol.
c. specializednreportsnfornincomentaxncalculationnandnrecognition.
d. reportsnonnchangesninnstocknpricesnandnfuturenestimatesnofnmarketnposition.
3. Financialn accountingn cann ben broadlyn definedn asn then arean ofn accountingn thatn preparesnfi
nancialnstatementsntonbenused
a bynpartiesninternalntonthenbusinessnenterprisenonly.
b. byninvestorsnonly.
c. bynpartiesnbothninternalnandnexternalntonthenbusinessnenterprise.
d. primarilynbynmanagement.
4. Theninformationnprovidednbynfinancialnreportingnpertainsnto
a. individualnbusinessnenterprises,nrathernthanntonindustriesnornanneconomynasnanwholenornt
onmembersnofnsocietynasnconsumers.
b. businessnindustries,nrathernthanntonindividualn enterprisesnornanneconomynasnanwholenornt
onmembersnofnsocietynasnconsumers.
c. individualnbusinessnenterprises,nindustries,nandnanneconomynasnanwhole,nrathernthannton
membersnofnsocietynasnconsumers.
d. ann economyn asn an wholen andn ton membersn ofn societyn asn consumers,n rathern thann toni
ndividualnenterprisesnornindustries.
5. Whethernanbusinessnisnsuccessfulnandnthrivesnisndeterminednby
a. freenenterprise.
b. competition.
c. markets.
d. allnofnthese.
6. Anneffectivencapitalnallocationnprocess
a. encouragesninnovation.
b. promotesnproductivity.
c. providesnannefficientnandnliquidnmarketnfornbuyingnandnsellingnsecurities.
d. allnofnthese.
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
THE CANADIAN n
FINANCIAL REPORTING ENVIRONMENT
n n
MULTIPLE CHOICE—Conceptual
n
Answer No. Description
d 1. Accountingncharacteristics.
a 2. Naturenofnfinancialnaccounting.
c 3. Definitionnofnfinancialnaccounting.
a 4. Financialnreportingnentity.
d 5. Efficientnusenofnresources.
d 6. Capitalnallocationnprocess.
c 7. Assessingnmanagementnstewardship.
c 8. Objectivesnofnfinancialnreporting.
a 9. RolenofnAcSB.
c 10. BodynresponsiblenfornsettingnGAAP.
b 11. Preparationnofnbiasedninformation.
d 12. Partiesninstrumentalninndevelopmentnofnreportingnstandards.
d 13. Stakeholdersninnthenfinancialnreportingnenvironment..
a 14. “Duenprocess”.
d 15. Causesnofnsubprimenlendingncrisis.
d 16. Managementnbias.
b 17. AdoptionnofnIFRS.
c 18. RolenofnOSC.
d 19. DefinitionnofnGAAP.
b 20. Changingnnaturenofntheneconomy.
d 21. Exercisenofnprofessionalnjudgement.
c 22. Majornfactorsninnthenreportingnenvironment.
a 23. Impactnofntechnologynonnfinancialnreporting.
b 24. Naturenofnthen“BalancednScorecard”.
a 25. Responsibilitynfornfinancialnstatements.
d 26. GAAPnfornprivatenenterprises.
d 27. Reportingnprinciples
b 28. SOX.
a 29 AcSB’snstandardnsettingnprocess
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
,1n-n2 TestnBanknfornIntermediatenAccounting,nNinthnCanadiannEdition
EXERCISES
Item Description
E1-30 Objectivesnofnfinancialnreporting.
E1-31
Rolenofnsecuritiesncommissionsnandnstocknexchanges.n
E1-32 Usernneeds.
E1-33 SourcesnofnGAAP.
E1-34 StandardnSetting.
E1-35 Challengesnfacingnfinancialnreporting.
E1-36 Stakeholdersninnthenfinancialnreportingnenvironment.
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
, ThenCanadiannFinancialnReportingnEnvironment 1n-n3
MULTIPLE CHOICE—Conceptual
n
1. Thenessentialncharacteristic(s)nofnaccountingnisn(are)
a. communicationnofnfinancialninformationntoninterestednpersons.
b. communicationnofnfinancialninformationnaboutneconomicnentities.
c. identification,nmeasurement,nandncommunicationnofnfinancialninformation.
d. allnofnthese.
2. Financialnaccountingnisnconcernednwithnthenprocessnthatnculminatesnin
a. thenpreparationnofnfinancialnreports.
b. specializednreportsnforninventorynmanagementnandncontrol.
c. specializednreportsnfornincomentaxncalculationnandnrecognition.
d. reportsnonnchangesninnstocknpricesnandnfuturenestimatesnofnmarketnposition.
3. Financialn accountingn cann ben broadlyn definedn asn then arean ofn accountingn thatn preparesnfi
nancialnstatementsntonbenused
a bynpartiesninternalntonthenbusinessnenterprisenonly.
b. byninvestorsnonly.
c. bynpartiesnbothninternalnandnexternalntonthenbusinessnenterprise.
d. primarilynbynmanagement.
4. Theninformationnprovidednbynfinancialnreportingnpertainsnto
a. individualnbusinessnenterprises,nrathernthanntonindustriesnornanneconomynasnanwholenornt
onmembersnofnsocietynasnconsumers.
b. businessnindustries,nrathernthanntonindividualn enterprisesnornanneconomynasnanwholenornt
onmembersnofnsocietynasnconsumers.
c. individualnbusinessnenterprises,nindustries,nandnanneconomynasnanwhole,nrathernthannton
membersnofnsocietynasnconsumers.
d. ann economyn asn an wholen andn ton membersn ofn societyn asn consumers,n rathern thann toni
ndividualnenterprisesnornindustries.
5. Whethernanbusinessnisnsuccessfulnandnthrivesnisndeterminednby
a. freenenterprise.
b. competition.
c. markets.
d. allnofnthese.
6. Anneffectivencapitalnallocationnprocess
a. encouragesninnovation.
b. promotesnproductivity.
c. providesnannefficientnandnliquidnmarketnfornbuyingnandnsellingnsecurities.
d. allnofnthese.
TestnBank Chaptern1
Copyrightn©n2010nJohnnWileyn&nSonsnCanada,nLtd.n Unauthorizedncopying,ndistribution,norntransmissionnofnthisnpagenisnprohibit
ed
