,DOWNLOAD THE Test Bank for Modern Advanced Accounting in Canada 8thEditio
M M M M M M M M M M M
n Hilton M
MULTIPLEM CHOICE.M ChooseM theM oneM alternativeM thatM bestM completesM theM statementM orM answersM theM question.
1) WhichMofMtheMfollowingMtypesMofMshareMinvestmentMdoesMNOTMqualifyMasMaMstrategicMinvestment?
A) ControlledMinvestments. B)M JointMControlMinvestments.
C)MInvestmentsMwithoutMsignificantMinfluence. D)MSignificantMinfluenceMinvestments.
Answer:M C
2) AMsignificantMinfluenceMinvestmentMisMoneMthat:
A) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMtheMstrategicMandMoperatingMpolicie
sMofMtheMAssociate.
B) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMtheMstrategicMoperatingMandMfinan
cingMpoliciesMofMtheMAssociate.
C) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMonlyMtheMoperatingMpoliciesMof
MtheMAssociate.
D) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMonlyMtheMfinancingMpoliciesMof
MtheMAssociate.
Answer:M B
3) WhatMisMtheMdominantMfactorMusedMtoMdistinguishMportfolioMinvestmentsMfromMsignificantMinflue
nceMinvestments?
A) TheMpercentageMofMequityMheldMbyMtheMinvestor.
B) UseMofMtheMEquityMMethodMtoMaccountMforMandMreportMtheMinvestment.
C) TheMinvestor'sMintentionMtoMestablishMorMmaintainMaMlong-
termMoperatingMrelationshipMwithMtheMinvestee.
D) UseMofMtheMCostMMethodMtoMaccountMforMandMreportMtheMinvestment.
Answer:M C
4) WhichMofMtheMfollowingMstatementsMisMTRUEMunderMIFRSM9?
A) OtherMComprehensiveMIncomeM(OCI)MisMincludedMinMRetainedMEarnings.
B) UnrealizedMgainsMandMlossesMonMequityMinvestmentsMmayMbeMincludedMinMOtherMComprehen
siveMIncomeM(OCI)MonlyMifMaMdecisionMtoMdoMsoMisMmadeMwhenMtheMinvestmentMisMacquired.
C) AllMunrealizedMgainsMandMlossesMonMequityMinvestmentsMflowMthroughMOtherMComprehen
siveMIncomeM(OCI).
D) UnrealizedMgainsMandMlossesMonMfairMvalueMthroughMprofitMandMlossM(FVTPL)Msecurities
MareMincludedMinMOtherMComprehensiveMIncome.
Answer:M B
5) GainsMandMlossesMonMfairMvalueMthroughMprofitMorMlossM(FVTPL)Msecurities:
A) areMincludedMinMnetMincomeMonlyMwhenMrealized.
B) areMneverMrecordedMuntilMtheMsecuritiesMareMsold.
C) areMincludedMinMnetMincome,MregardlessMofMwhetherMtheyMareMrealizedMorMnot.
D) areMincludedMinMnetMincomeMonlyMwhenMtheMinvestmentMhasMbecomeMpermanentlyMimpaired.
Answer:M C
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6) HowMareMrealizedMgainsMfromMtheMsaleMofMinvestmentsMaccountedMforMatMfairMvalueMthroughM
OtherMComprehensiveMIncomeM(FVTOCI)MaccountedMforMunderMIFRSM9?
A) TheyMareMtransferredMtoMRetainedMEarningsMwithoutMgoingMthroughMnetMincome.
B) TheyMareMtransferredMtoMnetMincomeMinMtheMperiodMofMtheMsale.
C) TheyMremainMinMAccumulatedMOtherMComprehensiveMIncome.
D) TheyMareMtransferredMtoMContributedMSurplus.
Answer:M A
7) WhenMusingMtheMcostMmethodMofMaccounting,MwhichMmethodMshouldMbeMusedMtoMdetermineMtheMcarr
yingMvalueMofMsharesMsoldMwhenMaMportionMofMtheMsharesMmakingMupManMinvestmentMisMsold?
A) SpecificMcost. B)M LastMin,MfirstMout. C)MAverageMcost. D)MFirstMin,MfirstMout.
Answer:M C
8) WhatMpercentageMofMownershipMisMusedMasMaMguidelineMtoMdetermineMthatMsignificantMinfluenceMe
xistsMunderMIASM28MInvestmentsMinMAssociatesMandMJointMVentures?
A) 20%MorMmore. B)M BetweenM20%MandM50%.
C)M25%MorMmore. D)MLessMthanM20%.
Answer:M B
9) WhichMofMtheMfollowingMmethodsMusesMproceduresMclosestMtoMthoseMusedMinMpreparingMconsolid
atedMfinancialMstatements?
A) FairMvalueMthroughMprofitMorMlossM(FVTPL).
B) TheMequityMmethod.
C) FairMvalueMthroughMotherMcomprehensiveMincome.
D) TheMcostMmethod.
Answer:M B
10) WhichMofMtheMfollowingMisMNOTMaMpossibleMindicatorMofMsignificantMinfluence?
A) TheMAssociate'sMnewMCEOMwasMpreviouslyMCEOMofMtheMinvestorMcompany.
B) TheMinvestorMhasMtheMabilityMtoMelectMmembersMtoMtheMBoardMofMDirectors.
C) TheMinvestorMhasMengagedMinMnumerousMintercompanyMtransactionsMwithMtheMAssociate.
D) TheMinvestorMhasMtheMrightMtoMparticipateMinMtheMpolicy-makingMprocess.
Answer:M A
11) WhichMofMtheMfollowingMstatementsMisMCORRECT?
A) AnMownershipMinterestMbetweenM0MandM10%McanMneverMimplyMsignificantMinfluence.
B) AnMownershipMinterestMbetweenM20%MandM50%MalwaysMimpliesMsignificantMinfluence.
C) SignificantMinfluenceMisMstillMpossibleMifMtheMInvestorMownsMlessMthanM20%MofMtheMvotingMshar
esMofMtheMAssociate.
D) ControlMisMonlyMpossibleMifMtheMInvestorMownsMmoreMthanM50%MofMtheMvotingMsharesMo
fMtheMAssociate.
Answer:M C
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12) TheMdifferenceMbetweenMtheMinvestor'sMcostMandMtheMinvestor'sMpercentageMofMtheMcarryingMvalueMo
fMtheMnetMidentifiableMassetsMofMtheMassociateMisMknownMas:
A) theMAcquisitionMDifferential. B)M Goodwill.
C) theMExcessMBookMValue. D)MtheMFairMValueMIncrement.
Answer:M A
13) AnyMunallocatedMpositiveMacquisitionMdifferentialMisMnormally:
A) expensedMduringMtheMyearMfollowingMtheMacquisition.
B) chargedMtoMRetainedMEarnings.
C) pro-ratedMacrossMtheMAssociate'sMidentifiableMnetMassets.
D) recordedMasMGoodwill.
Answer:M D
14) WhenMareMgainsMonMintercompanyMtransfersMofMassetsMbetweenManMinvestorMandMaMsignificantMinflue
nceMinvestmentMrecognizedMasMpartMofMtheMinvestmentMincomeMaccountedMforMbyMtheMparentMunderMt
heMequityMmethod?
A) TheyMareMneverMrecognized.
B) InMtheMperiod(s)MwhenMtheMassetsMareMsoldMtoMthirdMpartiesMorMconsumed.
C) InMtheMperiodMwhenMtheMintercompanyMtransferMtakesMplace.
D) TheyMareMrecognizedMonlyMwhenMtheMinvestmentMisMsold.
Answer:M B
15) The
investmentMmustMbeMshownMasMaMcurrentMasset,MwhereasMtheMotherMinvestmentsMcouldMbeMcurrentMorM
non-current,MdependingMonMmanagement'sMintention.
A) FVTPL B)M costMmethod C)MFVTOCI D)M equityMmethod
Answer:M A
16) WhenManalyzingMandMinterpretingMfinancialMstatements,MalthoughMtheMreportingMmethodsMshowMdiff
erentMvaluesMforMliquidity,Msolvency,MandMprofitability,MtheMrealMeconomicMsituationMis
forMtheMfourMdifferentMmethods.
A) completelyMdifferent
B) exactlyMtheMsame
C) almostMsimilarMexceptMforMtheMfairMvalueMmethods
D) almostMsimilarMexceptMforMtheMequityMmethod
Answer:M B
17) ReportinginMaccordanceMwithMtheMAccountingMStandardsMforMPrivateMEnterprisesM(ASPE)MisMpermit
tedMinMcertainMinstancesMfor:
A) allMCanadianMcompanies.
B) privatelyMheldMcompanies.
C) publiclyMheldMcompanies.
D) CanadianMcompaniesMconsolidatingMtheirMforeignMsubsidiaries.
Answer:M B
3
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M M M M M M M M M M M
n Hilton M
MULTIPLEM CHOICE.M ChooseM theM oneM alternativeM thatM bestM completesM theM statementM orM answersM theM question.
1) WhichMofMtheMfollowingMtypesMofMshareMinvestmentMdoesMNOTMqualifyMasMaMstrategicMinvestment?
A) ControlledMinvestments. B)M JointMControlMinvestments.
C)MInvestmentsMwithoutMsignificantMinfluence. D)MSignificantMinfluenceMinvestments.
Answer:M C
2) AMsignificantMinfluenceMinvestmentMisMoneMthat:
A) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMtheMstrategicMandMoperatingMpolicie
sMofMtheMAssociate.
B) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMtheMstrategicMoperatingMandMfinan
cingMpoliciesMofMtheMAssociate.
C) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMonlyMtheMoperatingMpoliciesMof
MtheMAssociate.
D) allowsMtheMinvestorMtoMexerciseMsignificantMinfluenceMoverMonlyMtheMfinancingMpoliciesMof
MtheMAssociate.
Answer:M B
3) WhatMisMtheMdominantMfactorMusedMtoMdistinguishMportfolioMinvestmentsMfromMsignificantMinflue
nceMinvestments?
A) TheMpercentageMofMequityMheldMbyMtheMinvestor.
B) UseMofMtheMEquityMMethodMtoMaccountMforMandMreportMtheMinvestment.
C) TheMinvestor'sMintentionMtoMestablishMorMmaintainMaMlong-
termMoperatingMrelationshipMwithMtheMinvestee.
D) UseMofMtheMCostMMethodMtoMaccountMforMandMreportMtheMinvestment.
Answer:M C
4) WhichMofMtheMfollowingMstatementsMisMTRUEMunderMIFRSM9?
A) OtherMComprehensiveMIncomeM(OCI)MisMincludedMinMRetainedMEarnings.
B) UnrealizedMgainsMandMlossesMonMequityMinvestmentsMmayMbeMincludedMinMOtherMComprehen
siveMIncomeM(OCI)MonlyMifMaMdecisionMtoMdoMsoMisMmadeMwhenMtheMinvestmentMisMacquired.
C) AllMunrealizedMgainsMandMlossesMonMequityMinvestmentsMflowMthroughMOtherMComprehen
siveMIncomeM(OCI).
D) UnrealizedMgainsMandMlossesMonMfairMvalueMthroughMprofitMandMlossM(FVTPL)Msecurities
MareMincludedMinMOtherMComprehensiveMIncome.
Answer:M B
5) GainsMandMlossesMonMfairMvalueMthroughMprofitMorMlossM(FVTPL)Msecurities:
A) areMincludedMinMnetMincomeMonlyMwhenMrealized.
B) areMneverMrecordedMuntilMtheMsecuritiesMareMsold.
C) areMincludedMinMnetMincome,MregardlessMofMwhetherMtheyMareMrealizedMorMnot.
D) areMincludedMinMnetMincomeMonlyMwhenMtheMinvestmentMhasMbecomeMpermanentlyMimpaired.
Answer:M C
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6) HowMareMrealizedMgainsMfromMtheMsaleMofMinvestmentsMaccountedMforMatMfairMvalueMthroughM
OtherMComprehensiveMIncomeM(FVTOCI)MaccountedMforMunderMIFRSM9?
A) TheyMareMtransferredMtoMRetainedMEarningsMwithoutMgoingMthroughMnetMincome.
B) TheyMareMtransferredMtoMnetMincomeMinMtheMperiodMofMtheMsale.
C) TheyMremainMinMAccumulatedMOtherMComprehensiveMIncome.
D) TheyMareMtransferredMtoMContributedMSurplus.
Answer:M A
7) WhenMusingMtheMcostMmethodMofMaccounting,MwhichMmethodMshouldMbeMusedMtoMdetermineMtheMcarr
yingMvalueMofMsharesMsoldMwhenMaMportionMofMtheMsharesMmakingMupManMinvestmentMisMsold?
A) SpecificMcost. B)M LastMin,MfirstMout. C)MAverageMcost. D)MFirstMin,MfirstMout.
Answer:M C
8) WhatMpercentageMofMownershipMisMusedMasMaMguidelineMtoMdetermineMthatMsignificantMinfluenceMe
xistsMunderMIASM28MInvestmentsMinMAssociatesMandMJointMVentures?
A) 20%MorMmore. B)M BetweenM20%MandM50%.
C)M25%MorMmore. D)MLessMthanM20%.
Answer:M B
9) WhichMofMtheMfollowingMmethodsMusesMproceduresMclosestMtoMthoseMusedMinMpreparingMconsolid
atedMfinancialMstatements?
A) FairMvalueMthroughMprofitMorMlossM(FVTPL).
B) TheMequityMmethod.
C) FairMvalueMthroughMotherMcomprehensiveMincome.
D) TheMcostMmethod.
Answer:M B
10) WhichMofMtheMfollowingMisMNOTMaMpossibleMindicatorMofMsignificantMinfluence?
A) TheMAssociate'sMnewMCEOMwasMpreviouslyMCEOMofMtheMinvestorMcompany.
B) TheMinvestorMhasMtheMabilityMtoMelectMmembersMtoMtheMBoardMofMDirectors.
C) TheMinvestorMhasMengagedMinMnumerousMintercompanyMtransactionsMwithMtheMAssociate.
D) TheMinvestorMhasMtheMrightMtoMparticipateMinMtheMpolicy-makingMprocess.
Answer:M A
11) WhichMofMtheMfollowingMstatementsMisMCORRECT?
A) AnMownershipMinterestMbetweenM0MandM10%McanMneverMimplyMsignificantMinfluence.
B) AnMownershipMinterestMbetweenM20%MandM50%MalwaysMimpliesMsignificantMinfluence.
C) SignificantMinfluenceMisMstillMpossibleMifMtheMInvestorMownsMlessMthanM20%MofMtheMvotingMshar
esMofMtheMAssociate.
D) ControlMisMonlyMpossibleMifMtheMInvestorMownsMmoreMthanM50%MofMtheMvotingMsharesMo
fMtheMAssociate.
Answer:M C
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M M M M M M M M M M M
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12) TheMdifferenceMbetweenMtheMinvestor'sMcostMandMtheMinvestor'sMpercentageMofMtheMcarryingMvalueMo
fMtheMnetMidentifiableMassetsMofMtheMassociateMisMknownMas:
A) theMAcquisitionMDifferential. B)M Goodwill.
C) theMExcessMBookMValue. D)MtheMFairMValueMIncrement.
Answer:M A
13) AnyMunallocatedMpositiveMacquisitionMdifferentialMisMnormally:
A) expensedMduringMtheMyearMfollowingMtheMacquisition.
B) chargedMtoMRetainedMEarnings.
C) pro-ratedMacrossMtheMAssociate'sMidentifiableMnetMassets.
D) recordedMasMGoodwill.
Answer:M D
14) WhenMareMgainsMonMintercompanyMtransfersMofMassetsMbetweenManMinvestorMandMaMsignificantMinflue
nceMinvestmentMrecognizedMasMpartMofMtheMinvestmentMincomeMaccountedMforMbyMtheMparentMunderMt
heMequityMmethod?
A) TheyMareMneverMrecognized.
B) InMtheMperiod(s)MwhenMtheMassetsMareMsoldMtoMthirdMpartiesMorMconsumed.
C) InMtheMperiodMwhenMtheMintercompanyMtransferMtakesMplace.
D) TheyMareMrecognizedMonlyMwhenMtheMinvestmentMisMsold.
Answer:M B
15) The
investmentMmustMbeMshownMasMaMcurrentMasset,MwhereasMtheMotherMinvestmentsMcouldMbeMcurrentMorM
non-current,MdependingMonMmanagement'sMintention.
A) FVTPL B)M costMmethod C)MFVTOCI D)M equityMmethod
Answer:M A
16) WhenManalyzingMandMinterpretingMfinancialMstatements,MalthoughMtheMreportingMmethodsMshowMdiff
erentMvaluesMforMliquidity,Msolvency,MandMprofitability,MtheMrealMeconomicMsituationMis
forMtheMfourMdifferentMmethods.
A) completelyMdifferent
B) exactlyMtheMsame
C) almostMsimilarMexceptMforMtheMfairMvalueMmethods
D) almostMsimilarMexceptMforMtheMequityMmethod
Answer:M B
17) ReportinginMaccordanceMwithMtheMAccountingMStandardsMforMPrivateMEnterprisesM(ASPE)MisMpermit
tedMinMcertainMinstancesMfor:
A) allMCanadianMcompanies.
B) privatelyMheldMcompanies.
C) publiclyMheldMcompanies.
D) CanadianMcompaniesMconsolidatingMtheirMforeignMsubsidiaries.
Answer:M B
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