Test Bank - For Modern Advanced Accounting In Canada 9th Edition by Hilton Murray, Herauf Darrell

TEST BANK For n n




Modern Advanced Accounting In Canada
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10th Edition n




By Darrell Herauf, Chima Mbagwu
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Verified Chapter's 1 - 12 | Complete
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1-1

,TABLE OF CONTENTS n n




CHAPTER 1 Conceptual and Case Analysis Frameworks for Financial Reporting
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CHAPTER 2 Investments in Equity Securities
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CHAPTER 3 Business Combinations
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CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries
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CHAPTER 5 Consolidation Subsequent to Acquisition Date
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CHAPTER 6 Intercompany Inventory and Land Profits
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CHAPTER 7 (A) Intercompany Profits in Depreciable Assets (B) Intercompany Bondholdings
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CHAPTER 8 Consolidated Cash Flows and Changes in Ownership
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CHAPTER 9 Other Consolidation Reporting Issues
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CHAPTER 10 Foreign Currency Transactions
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CHAPTER 11 Translation and Consolidation of Foreign Operations
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CHAPTER 12 Accounting for Not-for-Profit and Public Sector Organizations
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1-2

, Chapter01 n




n Conceptual and Case Analysis Frameworks for Financial Reporting n n n n n n n




Multiple Choice Questions n n




1. Which of the following would NOT be a reason to obtain a greater understanding of
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accounting practices in other nations?
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A. Financial results are disclosed in different currencies.
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B. One needs to be aware of differing disclosure requirements from nation to nation, as this
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impacts the preparation of financial statements.
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C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing n n n n n n n n n




practices are not permitted in North America.
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D. Departures from the historical cost principle may be possible in other nations.
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Accessibility: Keyboard Navigation
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nBlooms: Remember
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Difficulty: Easy n



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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2. Which of the following would be most affected by financial statements being prepared
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under different accounting principles?
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A. Reduced comparability. n




B. Reduced reliability. n




C. Increased complexity. n




D. Inaccurate asset valuations. n n




Accessibility: Keyboard Navigation
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nBlooms: Remember
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Difficulty: Easy n



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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1-3

, 3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting
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standards. Why do companies in Canada ensure that their financial reporting is consistent
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with Canadian GAAP?
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A. Their bank requires them to do so.
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B. Their auditors require them to do so.
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C. Reporting under the CPA Canada Handbook - Accounting is required by public companies'
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boards of directors.
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D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually n n n n n n n n n n




required by many legal statutes.
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Accessibility: Keyboard Navigation n n



nBlooms: Remember n



Difficulty: Easy n



Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting. Topic:
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01-01 The Conceptual Framework for Financial Reporting
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4. Which decision has Canada made with respect to financial reporting for private
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enterprises?
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A. To adopt the IFRS standards for small and medium-sized enterprises.
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B. To retain the current standards.
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C. To look to US GAAP for standards.
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D. To develop and maintain its own standards for private enterprises.
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Accessibility: Keyboard Navigation n n



nBlooms: Remember n



Difficulty: Easy n



Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
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nTopic: 01-05 GAAP for Private Enterprises
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5. Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
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A. A corporation that has no public shareholders.
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B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.
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C. A corporation which is not profit oriented.
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D. A profit oriented enterprise that has none of its issued and outstanding financial
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instruments traded in a public market and does not hold assets in a fiduciary capacity for a
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broad group of outsiders as one of its primary businesses.
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Accessibility: Keyboard Navigation n n



nBlooms: Remember n



Difficulty: Easy n



Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different types of organizations.
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nTopic: 01-05 GAAP for Private Enterprises
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1-4