Test bank for intermediate accounting volume 1 8th edition by
thomas h beechy and joan e conrod Chapters 1-11
,TABLE OF CONTENT
Chapter 1: The Framework for Financial Reporting
Chapter 2: Accounting Judgements
Chapter 3: Statements of Income and Comprehensive Income
Chapter 4: Statements of Financial Position and Changes in Equity; Disclosure Notes
Chapter 5: The Statement of Cash Flows
Chapter 6: Revenue Recognition
Chapter 7: Financial Assets: Cash and Receivables
Chapter 8: Cost-Based Inventories and Cost of Sales
Chapter 9: Long-Lived Assets
Chapter 10: Depreciation, Amortization, and Impairment
Chapter 11: Financial Instruments: Investments in Bonds and Equity Securities
,Intermediate Accounting Volume 1 8E Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell,
Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Chapter 1-11 Answers are at the end of Each Chapter
Chapter 1
Student name:
1) The main purpose of financial accounting is to communicate useful financial information to
decision-makers both inside and outside of the business organization.
⊚ true
⊚ false
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
U.S has adopted IFRS completely.
⊚ true
⊚ false
5) A disclosed basis of accounting (DBA) is acceptable if a company's financial statements are
prepared solely for internal use.
⊚ true
⊚ false
, 6) Only publicly traded companies in Canada are required to adopt IFRS.
⊚ true
⊚ false
7) Earnings quality is said to be high when most of a company's earnings are the result of its
continuing operations.
⊚ true
⊚ false
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
9) In Canada, income for tax and accounting purposes may be different.
⊚ true
⊚ false
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
12) A company's functional currency is always the currency in which the financial statements are
presented.
⊚ true
⊚ false
thomas h beechy and joan e conrod Chapters 1-11
,TABLE OF CONTENT
Chapter 1: The Framework for Financial Reporting
Chapter 2: Accounting Judgements
Chapter 3: Statements of Income and Comprehensive Income
Chapter 4: Statements of Financial Position and Changes in Equity; Disclosure Notes
Chapter 5: The Statement of Cash Flows
Chapter 6: Revenue Recognition
Chapter 7: Financial Assets: Cash and Receivables
Chapter 8: Cost-Based Inventories and Cost of Sales
Chapter 9: Long-Lived Assets
Chapter 10: Depreciation, Amortization, and Impairment
Chapter 11: Financial Instruments: Investments in Bonds and Equity Securities
,Intermediate Accounting Volume 1 8E Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell,
Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Chapter 1-11 Answers are at the end of Each Chapter
Chapter 1
Student name:
1) The main purpose of financial accounting is to communicate useful financial information to
decision-makers both inside and outside of the business organization.
⊚ true
⊚ false
2) The Canadian Business Corporations Act mandates that all incorporated companies in
Canada follow IFRS.
⊚ true
⊚ false
3) Private companies in Canada may choose between IFRS or ASPE.
⊚ true
⊚ false
4) Canada has adapted its own pre-existing standards for public companies to IFRS, while the
U.S has adopted IFRS completely.
⊚ true
⊚ false
5) A disclosed basis of accounting (DBA) is acceptable if a company's financial statements are
prepared solely for internal use.
⊚ true
⊚ false
, 6) Only publicly traded companies in Canada are required to adopt IFRS.
⊚ true
⊚ false
7) Earnings quality is said to be high when most of a company's earnings are the result of its
continuing operations.
⊚ true
⊚ false
8) Income tax deferral is illegal in Canada.
⊚ true
⊚ false
9) In Canada, income for tax and accounting purposes may be different.
⊚ true
⊚ false
10) External users of a company's financial statements may have conflicting objectives.
⊚ true
⊚ false
11) In Canada, IFRS standards were essentially converged with Canadian GAAP.
⊚ true
⊚ false
12) A company's functional currency is always the currency in which the financial statements are
presented.
⊚ true
⊚ false
