Question 1

Lenders and creditors are most concerned with a company's

Accepted Answer

A) profitability. 
B) adherence to covenants. 
C) solvency. 
D) cash flows. 
A) profitability. 
B) adherence to covenants. 
C) solvency. 
D) cash flows.

Question 2

The International Accounting Standards Board is responsible for the creation of International Financial Reporting Standards used by companies whose securities are traded on international markets.

Accepted Answer

A) True 
 B)False

Question 3

In Canada,almost all equity financing for both public and private companies is done through private placements.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following financial statements are required for companies adhering to IFRS but NOT ASPE (private entity GAAP)?

Accepted Answer

A) Statement of Comprehensive income. 
B) Statement of financial position. 
C) Statement of Cash Flows. 
D) Statement of Retained Earnings. 
A) Statement of Comprehensive income. 
B) Statement of financial position. 
C) Statement of Cash Flows. 
D) Statement of Retained Earnings.

Question 5

Discuss the reasons why a corporation would have the motive or the tendency to adopt the same accounting practices for financial reporting purposes as for tax reporting.

Accepted Answer

The term used to for adopting the same a

Question 6

The role of the Accounting Standards Board (AcSB) in the formulation of accounting principles in Canada can be best described as:

Accepted Answer

A) primary. 
B) secondary. 
C) sometimes primary and sometimes secondary. 
D) Non-existent. 
A) primary. 
B) secondary. 
C) sometimes primary and sometimes secondary. 
D) Non-existent.

Question 7

Cash flow prediction is a common internal user reporting objective.

Accepted Answer

A) True 
 B)False

Question 8

An organization that has not published financial accounting standards is the:

Accepted Answer

A) Institute of Chartered Accountants. 
B) Certified Management Accountants of Canada. 
C) International Accounting Standards Committee. 
D) Emerging Issues Committee. 
A) Institute of Chartered Accountants. 
B) Certified Management Accountants of Canada. 
C) International Accounting Standards Committee. 
D) Emerging Issues Committee.

Question 9

The conceptual framework of accounting should have many positive effects as new accounting standards are developed.Which of the following is not one of those effects?

Accepted Answer

A) Financial statements among companies and industries should be more consistent and comparable. 
B) Standard setting should be more consistent with an overall statement of the objectives and concepts of financial reporting. 
C) Users' understanding and confidence in financial statements should increase. 
D) Management should have greater latitude in choosing among accounting alternatives. 
E) Accountants should be better able to assess the validity of different accounting alternatives for similar and dissimilar transactions and events. 
A) Financial statements among companies and industries should be more consistent and comparable. 
B) Standard setting should be more consistent with an overall statement of the objectives and concepts of financial reporting. 
C) Users' understanding and confidence in financial statements should increase. 
D) Management should have greater latitude in choosing among accounting alternatives. 
E) Accountants should be better able to assess the validity of different accounting alternatives for similar and dissimilar transactions and events.

Question 10

The CICA Handbook is the most important primary source of GAAP.

Accepted Answer

A) True 
 B)False

Question 11

The CICA Handbook requires that income for tax purposes be equal to a company's accounting income at all times.

Accepted Answer

A) True 
 B)False

Question 12

Generally accepted accounting principles are:

Accepted Answer

A) optional procedures for recording economic events. 
B) mandatory rules applied to both financial and management accounting. 
C) the rules of accounting, prescribed exclusively by Federal regulatory agencies. 
D) standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor. 
A) optional procedures for recording economic events. 
B) mandatory rules applied to both financial and management accounting. 
C) the rules of accounting, prescribed exclusively by Federal regulatory agencies. 
D) standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor.

Question 13

Discuss in general the due process procedure the AcSB follows in developing accounting standards.Who are the groups which typically have opposing views when it comes to accounting standards,and why?

Accepted Answer

After identifying an issue of interest,t

Question 14

FASB and International Accounting Standards are secondary sources of GAAP.

Accepted Answer

A) True 
 B)False

Question 15

External users of a company's financial statements may have conflicting objectives.

Accepted Answer

A) True 
 B)False

Question 16

Secondary sources of GAAP should be evaluated on

Accepted Answer

A) acceptance of the source by industry professionals. 
B) the specificity of the source only. 
C) the continued relevance of the source only. 
D) the specificity of the source & the continued relevance of the source. 
E) None of these answers are correct. 
A) acceptance of the source by industry professionals. 
B) the specificity of the source only. 
C) the continued relevance of the source only. 
D) the specificity of the source & the continued relevance of the source. 
E) None of these answers are correct.

Question 17

A company's functional currency is the currency in which it conducts most of its business.

Accepted Answer

A) True 
 B)False

Question 18

Why is the response time more rapid for the Financial Standards Board (FASB) in the U.S.who issue Statements of Financial Accounting Standards (SFAS) than the CICA AcSB who take as much as two years to bring new Handbook Recommendations to fruition.

Accepted Answer

FASB has a full-time paid Boar

Question 19

Canadian corporations are prohibited from using U.S.GAAP.

Accepted Answer

A) True 
 B)False

Question 20

The essential characteristic(s) of accounting is (are):

Accepted Answer

A) communication of financial information to interested persons. 
B) communication of financial information about economic entities. 
C) identification, measurement, and communication of financial information. 
D) communication of financial information to interested persons, communication of financial information about economic entities, and identification, measurement, and communication of financial information. 
A) communication of financial information to interested persons. 
B) communication of financial information about economic entities. 
C) identification, measurement, and communication of financial information. 
D) communication of financial information to interested persons, communication of financial information about economic entities, and identification, measurement, and communication of financial information.

Lenders and creditors are most concerned with a company's

The International Accounting Standards Board is responsible for the creation of International Financial Reporting Standards used by companies whose securities are traded on international markets.

In Canada,almost all equity financing for both public and private companies is done through private placements.

Which of the following financial statements are required for companies adhering to IFRS but NOT ASPE (private entity GAAP)?

Discuss the reasons why a corporation would have the motive or the tendency to adopt the same accounting practices for financial reporting purposes as for tax reporting.

The role of the Accounting Standards Board (AcSB) in the formulation of accounting principles in Canada can be best described as:

Cash flow prediction is a common internal user reporting objective.

An organization that has not published financial accounting standards is the:

The conceptual framework of accounting should have many positive effects as new accounting standards are developed.Which of the following is not one of those effects?

The CICA Handbook is the most important primary source of GAAP.

The CICA Handbook requires that income for tax purposes be equal to a company's accounting income at all times.

Generally accepted accounting principles are:

Discuss in general the due process procedure the AcSB follows in developing accounting standards.Who are the groups which typically have opposing views when it comes to accounting standards,and why?

FASB and International Accounting Standards are secondary sources of GAAP.

External users of a company's financial statements may have conflicting objectives.

Secondary sources of GAAP should be evaluated on

A company's functional currency is the currency in which it conducts most of its business.

Why is the response time more rapid for the Financial Standards Board (FASB) in the U.S.who issue Statements of Financial Accounting Standards (SFAS) than the CICA AcSB who take as much as two years to bring new Handbook Recommendations to fruition.

Canadian corporations are prohibited from using U.S.GAAP.

The essential characteristic(s) of accounting is (are):

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Property,Plant,and Equipment; Intangibles; and Goodwill

Depreciation,Amortization,and Impairment

Financial Instruments: Investments in Debt and Equity Securities

Filters

Exam 1: The Framework for Financial Reporting

Lenders and creditors are most concerned with a company's

The International Accounting Standards Board is responsible for the creation of International Financial Reporting Standards used by companies whose securities are traded on international markets.

In Canada,almost all equity financing for both public and private companies is done through private placements.

Which of the following financial statements are required for companies adhering to IFRS but NOT ASPE (private entity GAAP)?

Discuss the reasons why a corporation would have the motive or the tendency to adopt the same accounting practices for financial reporting purposes as for tax reporting.

The role of the Accounting Standards Board (AcSB) in the formulation of accounting principles in Canada can be best described as:

Cash flow prediction is a common internal user reporting objective.

An organization that has not published financial accounting standards is the:

The conceptual framework of accounting should have many positive effects as new accounting standards are developed.Which of the following is not one of those effects?

The CICA Handbook is the most important primary source of GAAP.

The CICA Handbook requires that income for tax purposes be equal to a company's accounting income at all times.

Generally accepted accounting principles are:

Discuss in general the due process procedure the AcSB follows in developing accounting standards.Who are the groups which typically have opposing views when it comes to accounting standards,and why?

FASB and International Accounting Standards are secondary sources of GAAP.

External users of a company's financial statements may have conflicting objectives.

Secondary sources of GAAP should be evaluated on

A company's functional currency is the currency in which it conducts most of its business.

Why is the response time more rapid for the Financial Standards Board (FASB) in the U.S.who issue Statements of Financial Accounting Standards (SFAS) than the CICA AcSB who take as much as two years to bring new Handbook Recommendations to fruition.

Canadian corporations are prohibited from using U.S.GAAP.

The essential characteristic(s) of accounting is (are):

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Property,Plant,and Equipment; Intangibles; and Goodwill

Depreciation,Amortization,and Impairment

Financial Instruments: Investments in Debt and Equity Securities

Filters