, CHAPTER 1 g
THE CANADIAN g
FINANCIAL REPORTING ENVIRONMENT
g g
MULTIPLE CHOICE—Conceptual
g
Answer No. Description
d 1. Accountinggcharacteristics.
a 2. Naturegofgfinancialgaccounting.
c 3. Definitiongofgfinancialgaccounting.
a 4. Financialgreportinggentity.
d 5. Efficientgusegofgresources.
d 6. Capitalgallocationgprocess.
c 7. Assessinggmanagementgstewardship.
c 8. Objectivesgofgfinancialgreporting.
a 9. RolegofgAcSB.
c 10. BodygresponsiblegforgsettinggGAAP.
b 11. Preparationgofgbiasedginformation.
d 12. Partiesginstrumentalgingdevelopmentgofgreportinggstandards.
d 13. Stakeholdersgingthegfinancialgreportinggenvironment..
a 14. “Duegprocess”.
d 15. Causesgofgsubprimeglendinggcrisis.
d 16. Managementgbias.
b 17. AdoptiongofgIFRS.
c 18. RolegofgOSC.
d 19. DefinitiongofgGAAP.
b 20. Changinggnaturegofgthegeconomy.
d 21. Exercisegofgprofessionalgjudgement.
c 22. Majorgfactorsgingthegreportinggenvironment.
a 23. Impactgofgtechnologygongfinancialgreporting.
b 24. Naturegofgtheg“BalancedgScorecard”.
a 25. Responsibilitygforgfinancialgstatements.
d 26. GAAPgforgprivategenterprises.
d 27. Reportinggprinciples
b 28. SOX.
a 29 AcSB’sgstandardgsettinggprocess
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
,1g-g2 TestgBankgforgIntermediategAccounting,gNinthgCanadiangEdition
EXERCISES
Item Description
E1-30 Objectivesgofgfinancialgreporting.
E1-31
Rolegofgsecuritiesgcommissionsgandgstockgexchanges.g
E1-32 Usergneeds.
E1-33 SourcesgofgGAAP.
E1-34 StandardgSetting.
E1-35 Challengesgfacinggfinancialgreporting.
E1-36 Stakeholdersgingthegfinancialgreportinggenvironment.
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
, ThegCanadiangFinancialgReportinggEnvironment 1g-g3
MULTIPLE CHOICE—Conceptual
g
1. Thegessentialgcharacteristic(s)gofgaccountinggisg(are)
a. communicationgofgfinancialginformationgtoginterestedgpersons.
b. communicationgofgfinancialginformationgaboutgeconomicgentities.
c. identification,gmeasurement,gandgcommunicationgofgfinancialginformation.
d. allgofgthese.
2. Financialgaccountinggisgconcernedgwithgthegprocessgthatgculminatesgin
a. thegpreparationgofgfinancialgreports.
b. specializedgreportsgforginventorygmanagementgandgcontrol.
c. specializedgreportsgforgincomegtaxgcalculationgandgrecognition.
d. reportsgongchangesgingstockgpricesgandgfuturegestimatesgofgmarketgposition.
3. Financialg accountingg cang beg broadlyg definedg asg theg areag ofg accountingg thatg preparesgfi
nancialgstatementsgtogbegused
a bygpartiesginternalgtogthegbusinessgenterprisegonly.
b. byginvestorsgonly.
c. bygpartiesgbothginternalgandgexternalgtogthegbusinessgenterprise.
d. primarilygbygmanagement.
4. Theginformationgprovidedgbygfinancialgreportinggpertainsgto
a. individualgbusinessgenterprises,grathergthangtogindustriesgorgangeconomygasgagwholegorgt
ogmembersgofgsocietygasgconsumers.
b. businessgindustries,grathergthangtogindividualgenterprisesgorgangeconomygasgagwholegorgt
ogmembersgofgsocietygasgconsumers.
c. individualgbusinessgenterprises,gindustries,gandgangeconomygasgagwhole,grathergthangtog
membersgofgsocietygasgconsumers.
d. ang economyg asg ag wholeg andg tog membersg ofg societyg asg consumers,g ratherg thang togi
ndividualgenterprisesgorgindustries.
5. Whethergagbusinessgisgsuccessfulgandgthrivesgisgdeterminedgby
a. freegenterprise.
b. competition.
c. markets.
d. allgofgthese.
6. Angeffectivegcapitalgallocationgprocess
a. encouragesginnovation.
b. promotesgproductivity.
c. providesgangefficientgandgliquidgmarketgforgbuyinggandgsellinggsecurities.
d. allgofgthese.
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
THE CANADIAN g
FINANCIAL REPORTING ENVIRONMENT
g g
MULTIPLE CHOICE—Conceptual
g
Answer No. Description
d 1. Accountinggcharacteristics.
a 2. Naturegofgfinancialgaccounting.
c 3. Definitiongofgfinancialgaccounting.
a 4. Financialgreportinggentity.
d 5. Efficientgusegofgresources.
d 6. Capitalgallocationgprocess.
c 7. Assessinggmanagementgstewardship.
c 8. Objectivesgofgfinancialgreporting.
a 9. RolegofgAcSB.
c 10. BodygresponsiblegforgsettinggGAAP.
b 11. Preparationgofgbiasedginformation.
d 12. Partiesginstrumentalgingdevelopmentgofgreportinggstandards.
d 13. Stakeholdersgingthegfinancialgreportinggenvironment..
a 14. “Duegprocess”.
d 15. Causesgofgsubprimeglendinggcrisis.
d 16. Managementgbias.
b 17. AdoptiongofgIFRS.
c 18. RolegofgOSC.
d 19. DefinitiongofgGAAP.
b 20. Changinggnaturegofgthegeconomy.
d 21. Exercisegofgprofessionalgjudgement.
c 22. Majorgfactorsgingthegreportinggenvironment.
a 23. Impactgofgtechnologygongfinancialgreporting.
b 24. Naturegofgtheg“BalancedgScorecard”.
a 25. Responsibilitygforgfinancialgstatements.
d 26. GAAPgforgprivategenterprises.
d 27. Reportinggprinciples
b 28. SOX.
a 29 AcSB’sgstandardgsettinggprocess
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
,1g-g2 TestgBankgforgIntermediategAccounting,gNinthgCanadiangEdition
EXERCISES
Item Description
E1-30 Objectivesgofgfinancialgreporting.
E1-31
Rolegofgsecuritiesgcommissionsgandgstockgexchanges.g
E1-32 Usergneeds.
E1-33 SourcesgofgGAAP.
E1-34 StandardgSetting.
E1-35 Challengesgfacinggfinancialgreporting.
E1-36 Stakeholdersgingthegfinancialgreportinggenvironment.
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
, ThegCanadiangFinancialgReportinggEnvironment 1g-g3
MULTIPLE CHOICE—Conceptual
g
1. Thegessentialgcharacteristic(s)gofgaccountinggisg(are)
a. communicationgofgfinancialginformationgtoginterestedgpersons.
b. communicationgofgfinancialginformationgaboutgeconomicgentities.
c. identification,gmeasurement,gandgcommunicationgofgfinancialginformation.
d. allgofgthese.
2. Financialgaccountinggisgconcernedgwithgthegprocessgthatgculminatesgin
a. thegpreparationgofgfinancialgreports.
b. specializedgreportsgforginventorygmanagementgandgcontrol.
c. specializedgreportsgforgincomegtaxgcalculationgandgrecognition.
d. reportsgongchangesgingstockgpricesgandgfuturegestimatesgofgmarketgposition.
3. Financialg accountingg cang beg broadlyg definedg asg theg areag ofg accountingg thatg preparesgfi
nancialgstatementsgtogbegused
a bygpartiesginternalgtogthegbusinessgenterprisegonly.
b. byginvestorsgonly.
c. bygpartiesgbothginternalgandgexternalgtogthegbusinessgenterprise.
d. primarilygbygmanagement.
4. Theginformationgprovidedgbygfinancialgreportinggpertainsgto
a. individualgbusinessgenterprises,grathergthangtogindustriesgorgangeconomygasgagwholegorgt
ogmembersgofgsocietygasgconsumers.
b. businessgindustries,grathergthangtogindividualgenterprisesgorgangeconomygasgagwholegorgt
ogmembersgofgsocietygasgconsumers.
c. individualgbusinessgenterprises,gindustries,gandgangeconomygasgagwhole,grathergthangtog
membersgofgsocietygasgconsumers.
d. ang economyg asg ag wholeg andg tog membersg ofg societyg asg consumers,g ratherg thang togi
ndividualgenterprisesgorgindustries.
5. Whethergagbusinessgisgsuccessfulgandgthrivesgisgdeterminedgby
a. freegenterprise.
b. competition.
c. markets.
d. allgofgthese.
6. Angeffectivegcapitalgallocationgprocess
a. encouragesginnovation.
b. promotesgproductivity.
c. providesgangefficientgandgliquidgmarketgforgbuyinggandgsellinggsecurities.
d. allgofgthese.
TestgBank Chapterg1
Copyrightg©g2010gJohngWileyg&gSonsgCanada,gLtd.g Unauthorizedgcopying,gdistribution,gorgtransmissiongofgthisgpagegisgprohibit
ed
