, CHAPTER 1 p
THE CANADIAN p
FINANCIAL REPORTING ENVIRONMENT
p p
MULTIPLE CHOICE—Conceptual
p
Answer No. Description
d 1. Accountingpcharacteristics.
a 2. Naturepofpfinancialpaccounting.
c 3. Definitionpofpfinancialpaccounting.
a 4. Financialpreportingpentity.
d 5. Efficientpusepofpresources.
d 6. Capitalpallocationpprocess.
c 7. Assessingpmanagementpstewardship.
c 8. Objectivespofpfinancialpreporting.
a 9. RolepofpAcSB.
c 10. BodypresponsiblepforpsettingpGAAP.
b 11. Preparationpofpbiasedpinformation.
d 12. Partiespinstrumentalpinpdevelopmentpofpreportingpstandards.
d 13. Stakeholderspinpthepfinancialpreportingpenvironment..
a 14. “Duepprocess”.
d 15. Causespofpsubprimeplendingpcrisis.
d 16. Managementpbias.
b 17. AdoptionpofpIFRS.
c 18. RolepofpOSC.
d 19. DefinitionpofpGAAP.
b 20. Changingpnaturepofpthepeconomy.
d 21. Exercisepofpprofessionalpjudgement.
c 22. Majorpfactorspinpthepreportingpenvironment.
a 23. Impactpofptechnologyponpfinancialpreporting.
b 24. Naturepofpthep“BalancedpScorecard”.
a 25. Responsibilitypforpfinancialpstatements.
d 26. GAAPpforpprivatepenterprises.
d 27. Reportingpprinciples
b 28. SOX.
a 29 AcSB’spstandardpsettingpprocess
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
,1p-p2 TestpBankpforpIntermediatepAccounting,pNinthpCanadianpEdition
EXERCISES
Item Description
E1-30 Objectivespofpfinancialpreporting.
E1-31
Rolepofpsecuritiespcommissionspandpstockpexchanges.p
E1-32 Userpneeds.
E1-33 SourcespofpGAAP.
E1-34 StandardpSetting.
E1-35 Challengespfacingpfinancialpreporting.
E1-36 Stakeholderspinpthepfinancialpreportingpenvironment.
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
, ThepCanadianpFinancialpReportingpEnvironment 1p-p3
MULTIPLE CHOICE—Conceptual
p
1. Thepessentialpcharacteristic(s)pofpaccountingpisp(are)
a. communicationpofpfinancialpinformationptopinterestedppersons.
b. communicationpofpfinancialpinformationpaboutpeconomicpentities.
c. identification,pmeasurement,pandpcommunicationpofpfinancialpinformation.
d. allpofpthese.
2. Financialpaccountingpispconcernedpwithpthepprocesspthatpculminatespin
a. theppreparationpofpfinancialpreports.
b. specializedpreportspforpinventorypmanagementpandpcontrol.
c. specializedpreportspforpincomeptaxpcalculationpandprecognition.
d. reportsponpchangespinpstockppricespandpfuturepestimatespofpmarketpposition.
3. Financialp accountingp canp bep broadlyp definedp asp thep areap ofp accountingp thatp preparespfi
nancialpstatementsptopbepused
a byppartiespinternalptopthepbusinesspenterpriseponly.
b. bypinvestorsponly.
c. byppartiespbothpinternalpandpexternalptopthepbusinesspenterprise.
d. primarilypbypmanagement.
4. Thepinformationpprovidedpbypfinancialpreportingppertainspto
a. individualpbusinesspenterprises,pratherpthanptopindustriesporpanpeconomypaspapwholeporpt
opmemberspofpsocietypaspconsumers.
b. businesspindustries,pratherpthanptopindividualpenterprisesporpanpeconomypaspapwholeporpt
opmemberspofpsocietypaspconsumers.
c. individualpbusinesspenterprises,pindustries,pandpanpeconomypaspapwhole,pratherpthanptop
memberspofpsocietypaspconsumers.
d. anp economyp asp ap wholep andp top membersp ofp societyp asp consumers,p ratherp thanp topi
ndividualpenterprisesporpindustries.
5. Whetherpapbusinesspispsuccessfulpandpthrivespispdeterminedpby
a. freepenterprise.
b. competition.
c. markets.
d. allpofpthese.
6. Anpeffectivepcapitalpallocationpprocess
a. encouragespinnovation.
b. promotespproductivity.
c. providespanpefficientpandpliquidpmarketpforpbuyingpandpsellingpsecurities.
d. allpofpthese.
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
THE CANADIAN p
FINANCIAL REPORTING ENVIRONMENT
p p
MULTIPLE CHOICE—Conceptual
p
Answer No. Description
d 1. Accountingpcharacteristics.
a 2. Naturepofpfinancialpaccounting.
c 3. Definitionpofpfinancialpaccounting.
a 4. Financialpreportingpentity.
d 5. Efficientpusepofpresources.
d 6. Capitalpallocationpprocess.
c 7. Assessingpmanagementpstewardship.
c 8. Objectivespofpfinancialpreporting.
a 9. RolepofpAcSB.
c 10. BodypresponsiblepforpsettingpGAAP.
b 11. Preparationpofpbiasedpinformation.
d 12. Partiespinstrumentalpinpdevelopmentpofpreportingpstandards.
d 13. Stakeholderspinpthepfinancialpreportingpenvironment..
a 14. “Duepprocess”.
d 15. Causespofpsubprimeplendingpcrisis.
d 16. Managementpbias.
b 17. AdoptionpofpIFRS.
c 18. RolepofpOSC.
d 19. DefinitionpofpGAAP.
b 20. Changingpnaturepofpthepeconomy.
d 21. Exercisepofpprofessionalpjudgement.
c 22. Majorpfactorspinpthepreportingpenvironment.
a 23. Impactpofptechnologyponpfinancialpreporting.
b 24. Naturepofpthep“BalancedpScorecard”.
a 25. Responsibilitypforpfinancialpstatements.
d 26. GAAPpforpprivatepenterprises.
d 27. Reportingpprinciples
b 28. SOX.
a 29 AcSB’spstandardpsettingpprocess
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
,1p-p2 TestpBankpforpIntermediatepAccounting,pNinthpCanadianpEdition
EXERCISES
Item Description
E1-30 Objectivespofpfinancialpreporting.
E1-31
Rolepofpsecuritiespcommissionspandpstockpexchanges.p
E1-32 Userpneeds.
E1-33 SourcespofpGAAP.
E1-34 StandardpSetting.
E1-35 Challengespfacingpfinancialpreporting.
E1-36 Stakeholderspinpthepfinancialpreportingpenvironment.
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
, ThepCanadianpFinancialpReportingpEnvironment 1p-p3
MULTIPLE CHOICE—Conceptual
p
1. Thepessentialpcharacteristic(s)pofpaccountingpisp(are)
a. communicationpofpfinancialpinformationptopinterestedppersons.
b. communicationpofpfinancialpinformationpaboutpeconomicpentities.
c. identification,pmeasurement,pandpcommunicationpofpfinancialpinformation.
d. allpofpthese.
2. Financialpaccountingpispconcernedpwithpthepprocesspthatpculminatespin
a. theppreparationpofpfinancialpreports.
b. specializedpreportspforpinventorypmanagementpandpcontrol.
c. specializedpreportspforpincomeptaxpcalculationpandprecognition.
d. reportsponpchangespinpstockppricespandpfuturepestimatespofpmarketpposition.
3. Financialp accountingp canp bep broadlyp definedp asp thep areap ofp accountingp thatp preparespfi
nancialpstatementsptopbepused
a byppartiespinternalptopthepbusinesspenterpriseponly.
b. bypinvestorsponly.
c. byppartiespbothpinternalpandpexternalptopthepbusinesspenterprise.
d. primarilypbypmanagement.
4. Thepinformationpprovidedpbypfinancialpreportingppertainspto
a. individualpbusinesspenterprises,pratherpthanptopindustriesporpanpeconomypaspapwholeporpt
opmemberspofpsocietypaspconsumers.
b. businesspindustries,pratherpthanptopindividualpenterprisesporpanpeconomypaspapwholeporpt
opmemberspofpsocietypaspconsumers.
c. individualpbusinesspenterprises,pindustries,pandpanpeconomypaspapwhole,pratherpthanptop
memberspofpsocietypaspconsumers.
d. anp economyp asp ap wholep andp top membersp ofp societyp asp consumers,p ratherp thanp topi
ndividualpenterprisesporpindustries.
5. Whetherpapbusinesspispsuccessfulpandpthrivespispdeterminedpby
a. freepenterprise.
b. competition.
c. markets.
d. allpofpthese.
6. Anpeffectivepcapitalpallocationpprocess
a. encouragespinnovation.
b. promotespproductivity.
c. providespanpefficientpandpliquidpmarketpforpbuyingpandpsellingpsecurities.
d. allpofpthese.
TestpBank Chapterp1
Copyrightp©p2010pJohnpWileyp&pSonspCanada,pLtd.p Unauthorizedpcopying,pdistribution,porptransmissionpofpthisppagepispprohibit
ed
