Test Bank for Modern Advanced Accounting in Canada 9th Edition | Hilton, Murray, Herauf | Questions & Answers

TEST BANK for Modern Advanced Acc
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ounting in Canada 9th Edition Hilton
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Murray,Herauf Darrell
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,TEST BANK for Modern Advanced Accounting in Canada 9th Edition Hilton Murray,He
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auf Darrell
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Chapter 01 o o


Conceptual and Case Analysis Frameworks for Financial Reporting
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MultipleoChoiceoQuestions


1. WhichoofotheofollowingowouldoNOTobeoaoreasonotooobtainoaogreaterounderstandingoofoa
ccountingopracticesoinootheronations?
A. Financialoresultsoareodisclosedoinodifferentocurrencies.
B. Oneoneedsotoobeoawareoofodifferingodisclosureorequirementsofromonationotoonation,oasothisoi
mpactsotheopreparationoofofinancialostatements.
C. Income-
smoothingomayohaveoaffectedoaoforeignosubsidiary'soresults;osuchosmoothingopracticesoare
onotopermittedoinoNorthoAmerica.

D. Departuresofromotheohistoricalocostoprincipleomayobeopossibleoinootheronations.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
01oDescribeoandoapplyotheoconceptualoframeworkoforofinancialoreporting.oTopic:o01-
01oTheoConceptualoFrameworkoforoFinancialoReporting



2. Whichoofotheofollowingowouldobeomostoaffectedobyofinancialostatementsobeingopreparedou
nderodifferentoaccountingoprinciples?
A. Reducedocomparability.
B. Reducedoreliability.
C. Increasedocomplexity.
D. Inaccurateoassetovaluations.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
01oDescribeoandoapplyotheoconceptualoframeworkoforofinancialoreporting.oTopic:o01-
01oTheoConceptualoFrameworkoforoFinancialoReporting




1-1

,3. TheoCPAoCanadaoHandbooko-
oAccountingoisotheohandbookoofoCanadianoaccountingostandards.oWhyodoocompaniesoinoCan

adaoensureothatotheirofinancialoreportingoisoconsistentowithoCanadianoGAAP?
A. Theirobankorequiresothemotoodooso.
B. Theiroauditorsorequireothemotoodooso.
C. ReportingounderotheoCPAoCanadaoHandbooko-
oAccountingoisorequiredobyopublicocompanies'oboardsoofodirectors.

D. ComplianceowithotheoCPAoCanadaoHandbooko-
oAccountingopronouncementsoisousuallyorequired obyomanyolegalostatutes.




Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
01oDescribeoandoapplyotheoconceptualoframeworkoforofinancialoreporting.oTopic:o01-
01oTheoConceptualoFrameworkoforoFinancialoReporting



4. WhichodecisionohasoCanadaomadeowithorespectotoofinancialoreportingoforoprivateoe
nterprises?
A. TooadoptotheoIFRSostandardsoforosmalloandomedium-sizedoenterprises.
B. Tooretainotheocurrentostandards.
C. ToolookotooUSoGAAPoforostandards.
D. Toodevelopoandomaintainoitsoownostandardsoforoprivateoenterprises.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
02oDescribeohowoaccountingostandardsoinoCanadaoareotailoredotoodifferentotypesoofoorganizations.oTopic:o01-
05oGAAPoforoPrivateoEnterprises

5. Startingoino2011,owhatoisotheodefinitionoofoaoprivateoenterpriseo(PE)ounderoCanadianoGAAP?
A. Aocorporationothatohasonoopublicoshareholders.
B. Aocorporationothatohasolessothano500oshareholdersoandoisonotolistedoonoaostockoexchange.
C. Aocorporationowhichoisonotoprofitooriented.
D. Aoprofitoorientedoenterpriseothatohasononeoofoitsoissuedoandooutstandingofinancialoinstrum
entsotradedoinoaopublicomarketoandodoesonotoholdoassetsoinoaofiduciaryocapacityoforoaobroadogr
oupoofooutsidersoasooneoofoitsoprimaryobusinesses.

Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
02oDescribeohowoaccountingostandardsoinoCanadaoareotailoredotoodifferentotypesoofoorganizations.oTopic:o01-
05oGAAPoforoPrivateoEnterprises




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, 6. WhichoenterprisesomustoreportounderoIFRSoinoCanada?
A. Allocorporations,ogovernmentoagenciesoandoprivateocompanies.
B. Publicocompaniesoandoprivateocompaniesowhoseoshareholders'oequityoisoinoexcessoof
$500,000,000oatoanyoparticularoyearoend.
C. Publicocompanies,oprivateocompaniesoandonot-for-profitoorganizations.
D. Publiclyoaccountableoenterprises.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
02oDescribeohowoaccountingostandardsoinoCanadaoareotailoredotoodifferentotypesoofoorganizations.oTopic:o01-
04oGAAPoforoPubliclyoAccountableoEnterprises



7. WhatoapproachodidoCanadaofirstodecideotootakeowithorespectotooconvergenceowithoIFRS?
A. HarmonizationoofoCPAoCanadaoHandbookowithoIFRS.
B. SubstitutingoIFRSoforoCanadianoGAAPowhenoapprovedobyotheoIASB.
C. AdoptingosomeobutonotonecessarilyoalloIFRSsobyoreviewingothemoonoaocaseobyocaseobasis.
D. Reviewingothemowithoallopublicallyoaccountableoentitiesotooseeowhichoonesowouldobeoa
cceptable.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
02oDescribeohowoaccountingostandardsoinoCanadaoareotailoredotoodifferentotypesoofoorganizations.oTopic:o01-
04oGAAPoforoPubliclyoAccountableoEnterprises



8. Whatochoice(s)odooprivateoenterprisesohaveoinotheirofinancialoreportingoinoCanada?
A. Theyohaveonoochoiceoatoall;otheyowilloneedotooreporto underoIFRS.
B. Theyomayoelectotoocontinueowithodifferentialoreporting.
C. Theyomayoadoptoaccountingoprinciplesothatoareoappropriateotootheocircumstances.
D. TheyomayoelectotooreportounderoeitheroIFRSooroASPEobutoonceoadopted,omustouseoallotheost
andards.


Accessibility:oKeyboardoNavigation
oBlooms:oRemember
Difficulty:oEasy
LearningoObjective:o01-
02oDescribeohowoaccountingostandardsoinoCanadaoareotailoredotoodifferentotypesoofoorganizations.oTopic:o01-
05oGAAPoforoPrivateoEnterprises




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