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TEST BANK for Modern Advanced Accounting in Canada 9th Edition by Hilton Murray, Herauf Darrell A+ $12.99   Add to cart

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TEST BANK for Modern Advanced Accounting in Canada 9th Edition by Hilton Murray, Herauf Darrell A+

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  • October 2, 2024
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TEST BANK for Modern Advanced Accounting in Canada

9th Edition by Hilton Murray, Herauf Darrell A+
Chapter 01 Conceptual and Case Analysis Frameworks for Financial Reporting

Multiple Choice Questions




1. Which of the following would NOT be a reason to obtain a greater understanding of

accounting practices in other nations?

A. Financial results are disclosed in different currencies.

B. One needs to be aware of differing disclosure requirements from nation to nation, as this

impacts the preparation of financial statements.

C. Income-smoothing may have affected a foreign subsidiary's results; such smoothing

practices are not permitted in North America.

D. Departures from the historical cost principle may be possible in other nations.




Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Easy

Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.

Topic: 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

under different accounting principles?

A. Reduced comparability.

B. Reduced reliability.

C. Increased complexity.

D. Inaccurate asset valuations.




Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Easy

Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.

Topic: 01-01 The Conceptual Framework for Financial Reporting




3. The CPA Canada Handbook - Accounting is the handbook of Canadian accounting

standards. Why do companies in Canada ensure that their financial reporting is consistent with

Canadian GAAP?

A. Their bank requires them to do so.

B. Their auditors require them to do so.

C. Reporting under the CPA Canada Handbook - Accounting is required by public

companies' boards of directors.



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D. Compliance with the CPA Canada Handbook - Accounting pronouncements is usually

required by many legal statutes.




Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Easy

Learning Objective: 01-01 Describe and apply the conceptual framework for financial reporting.

Topic: 01-01 The Conceptual Framework for Financial Reporting




4. Which decision has Canada made with respect to financial reporting for private

enterprises?

A. To adopt the IFRS standards for small and medium-sized enterprises.

B. To retain the current standards.

C. To look to US GAAP for standards.

D. To develop and maintain its own standards for private enterprises.




Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Easy

Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different

types of organizations. Topic: 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?

A. A corporation that has no public shareholders.

B. A corporation that has less than 500 shareholders and is not listed on a stock exchange.

C. A corporation which is not profit oriented.

D. A profit oriented enterprise that has none of its issued and outstanding financial

instruments traded in a public market and does not hold assets in a fiduciary capacity for a broad

group of outsiders as one of its primary businesses.



Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Easy

Learning Objective: 01-02 Describe how accounting standards in Canada are tailored to different

types of organizations. Topic: 01-05 GAAP for Private Enterprises



6. Which enterprises must report under IFRS in Canada?

A. All corporations, government agencies and private companies.

B. Public companies and private companies whose shareholders' equity is in excess of

$500,000,000 at any particular year end.

C. Public companies, private companies and not-for-profit organizations.

D. Publicly accountable enterprises.




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