Question 1

Which of the following is LEAST likely to influence a country's accounting standards?

Accepted Answer

A)  Taxation Policies. 
B)  Different Legal Systems. 
C)  The currency used. 
D)  Ties between countries. 
A)  Taxation Policies. 
B)  Different Legal Systems. 
C)  The currency used. 
D)  Ties between countries. C

Question 2

In which of the following countries has income tax law had the greatest effect on its accounting policies?

Accepted Answer

A)  Canada 
B)  The United Kingdom 
C)  Japan 
D)  The United States 
A)  Canada 
B)  The United Kingdom 
C)  Japan 
D)  The United States C

Question 3

Accounting policies created in countries governed by code law tend to

Accepted Answer

A)  has greater disclosure requirements on Financial Statements. 
B)  offer more favourable tax incentives to foreign countries. 
C)  offer greater protection to creditors and suppliers. 
D)  favour illicit activity. 
A)  has greater disclosure requirements on Financial Statements. 
B)  offer more favourable tax incentives to foreign countries. 
C)  offer greater protection to creditors and suppliers. 
D)  favour illicit activity. C

Question 4

Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?

Accepted Answer

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. 
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.

Question 5

One of the underlying assumptions of the Historical Cost Principle is that a stable unit of measure (currency) should be used for Financial Reporting. Is this always the case? How have some countries attempted to adjust for any limitations associated with the Historical Cost Principle?

Accepted Answer

The Historical Cost Principle is not ver

Question 6

List 5 factors that can influence a country's accounting standards.

Accepted Answer

1. The role of taxation.
2. Th

Question 7

The European Union has attempted to harmonize accounting principles amongst its member nations by issuing:

Accepted Answer

A)  statutes. 
B)  standards. 
C)  bylaws. 
D)  directives. 
A)  statutes. 
B)  standards. 
C)  bylaws. 
D)  directives.

Question 8

What agreement was signed between the IASB and FASB in September 2002?

Accepted Answer

A)  An agreement to set educational standards for accounting professionals in the United States. 
B)  An agreement to review US accounting standards to determine their appropriateness. 
C)  An agreement to develop international accounting standards based on U.S. GAAP. 
D)  An agreement to acknowledge their commitment to the development of high quality, compatible accounting standards for use in domestic and cross-border financial reporting. 
A)  An agreement to set educational standards for accounting professionals in the United States. 
B)  An agreement to review US accounting standards to determine their appropriateness. 
C)  An agreement to develop international accounting standards based on U.S. GAAP. 
D)  An agreement to acknowledge their commitment to the development of high quality, compatible accounting standards for use in domestic and cross-border financial reporting.

Question 9

What approach did Canada first decide to take with respect to convergence with IFRSs?

Accepted Answer

A)  Harmonization of Canadian GAAP with IFRS. 
B)  Substituting IFRS's for Canadian GAAP when approved by the IASB. 
C)  Adopting some but not necessarily all IFRSs by reviewing them on a case by case basis. 
D)  Reviewing them with all publically accountable entities to see which ones would be acceptable. 
A)  Harmonization of Canadian GAAP with IFRS. 
B)  Substituting IFRS's for Canadian GAAP when approved by the IASB. 
C)  Adopting some but not necessarily all IFRSs by reviewing them on a case by case basis. 
D)  Reviewing them with all publically accountable entities to see which ones would be acceptable.

Question 10

Which decision has Canada made with respect to financial reporting for small and medium sized enterprise?

Accepted Answer

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. 
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.

Question 11

Which of the following is NOT a reason why a Canadian private company would elect to report under IFRS?

Accepted Answer

A)  The company is planning to go public in the near future. 
B)  The company seeks comparability with public companies of a similar size. 
C)  It is likely to be less expensive than reporting under ASPE. 
D)  The company is a subsidiary of a Canadian public company. 
A)  The company is planning to go public in the near future. 
B)  The company seeks comparability with public companies of a similar size. 
C)  It is likely to be less expensive than reporting under ASPE. 
D)  The company is a subsidiary of a Canadian public company.

Question 12

Asset revaluations, unlike in Canada, have been acceptable in many countries for accounting purposes. Which of the following adjustments have been allowed?

Accepted Answer

A)  Price level adjusted historical costs. 
B)  Periodic adjustment of asset valuations to current replacement cost. 
C)  Immediate write off of purchased goodwill to equity. 
D)  All of the above. 
A)  Price level adjusted historical costs. 
B)  Periodic adjustment of asset valuations to current replacement cost. 
C)  Immediate write off of purchased goodwill to equity. 
D)  All of the above.

Question 13

Which of the following is true with respect to the implementation of IASB standards for the European Union?

Accepted Answer

A)  These standards have been in place since 1985. 
B)  Beginning in 2005, all European companies whose shares trade on stock exchanges were required to prepare their consolidated financial statements in accordance with IFRSs. 
C)  All members of the European Union are required to comply with these standards with the exception of the United Kingdom. 
D)  Compliance with these standards by European public companies is strictly optional. 
A)  These standards have been in place since 1985. 
B)  Beginning in 2005, all European companies whose shares trade on stock exchanges were required to prepare their consolidated financial statements in accordance with IFRSs. 
C)  All members of the European Union are required to comply with these standards with the exception of the United Kingdom. 
D)  Compliance with these standards by European public companies is strictly optional.

Question 14

For which of the following types of organizations does the CICA Handbook - Accounting not provide specific accounting standards?

Accepted Answer

A)  Publicly accountable enterprises. 
B)  Private enterprises. 
C)  Not-for-profit organizations. 
D)  Proprietorships. 
A)  Publicly accountable enterprises. 
B)  Private enterprises. 
C)  Not-for-profit organizations. 
D)  Proprietorships.

Question 15

Many large corporations have operation in numerous countries around the world. As a result, they need to raise debt and equity in order to finance their operations in many different countries. Has the movement towards converging global reporting standards made it easier for corporations to raise capital in many different capital markets around the world?

Accepted Answer

Prior to the wide-spread international a

Question 16

If a country's accounting income does not differ significantly from its taxable income, one would reasonably expect:

Accepted Answer

A)  extreme conservatism on the part of accountants. 
B)  a significant amount of deferred taxes on the balance sheet. 
C)  that the use of LIFO would be more prevalent. 
D)  extreme conservatism on the part of accountants as well as increased use of LIFO. 
A)  extreme conservatism on the part of accountants. 
B)  a significant amount of deferred taxes on the balance sheet. 
C)  that the use of LIFO would be more prevalent. 
D)  extreme conservatism on the part of accountants as well as increased use of LIFO.

Question 17

Countries are most likely to have similar accounting policies when:

Accepted Answer

A)  they have greater political and economic ties. 
B)  they share a common language. 
C)  they are close to each other geographically. 
D)  their economies are of a similar size. 
A)  they have greater political and economic ties. 
B)  they share a common language. 
C)  they are close to each other geographically. 
D)  their economies are of a similar size.

Question 18

Which of the following nations is NOT governed by code (statute) law?

Accepted Answer

A)  Germany 
B)  Japan 
C)  France 
D)  Canada 
A)  Germany 
B)  Japan 
C)  France 
D)  Canada

Question 19

Prior to adoption of IFRS in 2011, Canada's accounting policies most resembled those of which nation?

Accepted Answer

A)  The United Kingdom. 
B)  The United States. 
C)  The European Union (EU) 
D)  Australia 
A)  The United Kingdom. 
B)  The United States. 
C)  The European Union (EU) 
D)  Australia

Question 20

Which of the following is a factor that can influence a country's accounting standards?

Accepted Answer

A)  The level of development of capital markets. 
B)  Political policy. 
C)  Market practice. 
D)  Educational standards set for professional accountants. 
A)  The level of development of capital markets. 
B)  Political policy. 
C)  Market practice. 
D)  Educational standards set for professional accountants.

Which of the following is LEAST likely to influence a country's accounting standards?

In which of the following countries has income tax law had the greatest effect on its accounting policies?

Accounting policies created in countries governed by code law tend to

Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?

One of the underlying assumptions of the Historical Cost Principle is that a stable unit of measure (currency) should be used for Financial Reporting. Is this always the case? How have some countries attempted to adjust for any limitations associated with the Historical Cost Principle?

List 5 factors that can influence a country's accounting standards.

The European Union has attempted to harmonize accounting principles amongst its member nations by issuing:

What agreement was signed between the IASB and FASB in September 2002?

What approach did Canada first decide to take with respect to convergence with IFRSs?

Which decision has Canada made with respect to financial reporting for small and medium sized enterprise?

Which of the following is NOT a reason why a Canadian private company would elect to report under IFRS?

Asset revaluations, unlike in Canada, have been acceptable in many countries for accounting purposes. Which of the following adjustments have been allowed?

Which of the following is true with respect to the implementation of IASB standards for the European Union?

For which of the following types of organizations does the CICA Handbook - Accounting not provide specific accounting standards?

If a country's accounting income does not differ significantly from its taxable income, one would reasonably expect:

Countries are most likely to have similar accounting policies when:

Which of the following nations is NOT governed by code (statute) law?

Prior to adoption of IFRS in 2011, Canada's accounting policies most resembled those of which nation?

Which of the following is a factor that can influence a country's accounting standards?

Investments in Equity Securities

Business Combinations

Consolidation of Non-Wholly Owned Subsidiaries

Consolidation Subsequent to Acquisition Date

Intercompany Inventory and Land Profits

A Intercompany Profits in Depreciable Assets B Intercompany Bondholdings

Consolidated Cash Flows and Changes in Ownership

Other Consolidation Reporting Issues

Foreign Currency Transactions

Translation and Consolidation of Foreign Operations

Accounting for Not-For-Profit and Public Sector Organizations

Filters

Exam 1: Conceptual and Case Analysis Frameworks for Financial Reporting

Which of the following is LEAST likely to influence a country's accounting standards?

In which of the following countries has income tax law had the greatest effect on its accounting policies?

Accounting policies created in countries governed by code law tend to

Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?

One of the underlying assumptions of the Historical Cost Principle is that a stable unit of measure (currency) should be used for Financial Reporting. Is this always the case? How have some countries attempted to adjust for any limitations associated with the Historical Cost Principle?

List 5 factors that can influence a country's accounting standards.

The European Union has attempted to harmonize accounting principles amongst its member nations by issuing:

What agreement was signed between the IASB and FASB in September 2002?

What approach did Canada first decide to take with respect to convergence with IFRSs?

Which decision has Canada made with respect to financial reporting for small and medium sized enterprise?

Which of the following is NOT a reason why a Canadian private company would elect to report under IFRS?

Asset revaluations, unlike in Canada, have been acceptable in many countries for accounting purposes. Which of the following adjustments have been allowed?

Which of the following is true with respect to the implementation of IASB standards for the European Union?

For which of the following types of organizations does the CICA Handbook - Accounting not provide specific accounting standards?

If a country's accounting income does not differ significantly from its taxable income, one would reasonably expect:

Countries are most likely to have similar accounting policies when:

Which of the following nations is NOT governed by code (statute) law?

Prior to adoption of IFRS in 2011, Canada's accounting policies most resembled those of which nation?

Which of the following is a factor that can influence a country's accounting standards?

Investments in Equity Securities

Business Combinations

Consolidation of Non-Wholly Owned Subsidiaries

Consolidation Subsequent to Acquisition Date

Intercompany Inventory and Land Profits

A Intercompany Profits in Depreciable Assets B Intercompany Bondholdings

Consolidated Cash Flows and Changes in Ownership

Other Consolidation Reporting Issues

Foreign Currency Transactions

Translation and Consolidation of Foreign Operations

Accounting for Not-For-Profit and Public Sector Organizations

Filters