Question 1

The CPA Canada 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 2

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 3

The stewardship function is reflected by:

Accepted Answer

A)  Minimizing interperiod allocations only. 
B)  Performance evaluation. 
C)  Full disclosure only. 
D)  Performance evaluation and minimizing interperiod allocations. 
E)  Full disclosure and minimizing interperiod allocations. 
A)  Minimizing interperiod allocations only. 
B)  Performance evaluation. 
C)  Full disclosure only. 
D)  Performance evaluation and minimizing interperiod allocations. 
E)  Full disclosure and minimizing interperiod allocations.

Question 4

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 5

External decision-makers include all of the following except:

Accepted Answer

A)  managers. 
B)  owners. 
C)  creditors. 
D)  employees. 
A)  managers. 
B)  owners. 
C)  creditors. 
D)  employees.

Question 6

Which of the following is NOT a primary source of GAAP?

Accepted Answer

A)  Accounting sections of the CPA Handbook, PART I. 
B)  FASB accounting standards. 
C)  Accounting Guidelines issued by the AcSB. 
D)  Accounting sections of the CPA Handbook, PART II. 
A)  Accounting sections of the CPA Handbook, PART I. 
B)  FASB accounting standards. 
C)  Accounting Guidelines issued by the AcSB. 
D)  Accounting sections of the CPA Handbook, PART II.

Question 7

Do you think that most companies in the oil sector would adopt expanded disclosure policies or simply adhere to minimum compliance requirements? Explain.

Accepted Answer

Students' answers are sure to vary here,

Question 8

A disclosed basis of accounting is acceptable if a company's financial statements are prepared solely for internal use.

Accepted Answer

A) True 
 B)False

Question 9

General-purpose financial statements report financial information relevant to:

Accepted Answer

A)  investors only. 
B)  creditors only. 
C)  government users only. 
D)  investors, creditors and government users. 
A)  investors only. 
B)  creditors only. 
C)  government users only. 
D)  investors, creditors and government users.

Question 10

Income tax deferral is illegal in Canada.

Accepted Answer

A) True 
 B)False

Question 11

Explain the differences between the adoption, adaption and convergence of accounting standards.

Accepted Answer

Adoption refers to the acceptance of a n

Question 12

Give two reasons why managers may have a bias toward smoothing earnings, and give two examples stating how this is achieved in practice.

Accepted Answer

Income smoothing is performed:
a. To red

Question 13

A company whose net income is highly correlated to its operating cash flows is said to have a high quality of earnings.

Accepted Answer

A) True 
 B)False

Question 14

The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS.

Accepted Answer

A) True 
 B)False

Question 15

Canada has adapted its own pre-existing standards for public companies to IFRS, while the U.S has adopted IFRS completely.

Accepted Answer

A) True 
 B)False

Question 16

The users toward which financial statements are directed:

Accepted Answer

A)  are very sophisticated and experienced in using financial information. 
B)  are independent Public Accountants. 
C)  have degrees in accounting and finance. 
D)  have a reasonable understanding of business and economic activities. 
E)  are Chartered Financial Analysts. 
A)  are very sophisticated and experienced in using financial information. 
B)  are independent Public Accountants. 
C)  have degrees in accounting and finance. 
D)  have a reasonable understanding of business and economic activities. 
E)  are Chartered Financial Analysts.

Question 17

During the coming years, we should expect the ACSB to:

Accepted Answer

A)  extend differential reporting options available to private companies. 
B)  harmonize Canadian GAAP to international standards. 
C)  continue to provide accounting standards for private companies. 
D)  All of these choices are correct. 
A)  extend differential reporting options available to private companies. 
B)  harmonize Canadian GAAP to international standards. 
C)  continue to provide accounting standards for private companies. 
D)  All of these choices are correct.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The body that has the responsibility to set generally accepted accounting principles in Canada is the:

Accepted Answer

A)  FASB. 
B)  IASC. 
C)  AcSB. 
D)  OSC. 
A)  FASB. 
B)  IASC. 
C)  AcSB. 
D)  OSC.

Question 20

Different stakeholders have different reporting requirements with respect to general-purpose financial statements. A lender will be more interested in a company's cash flows while an investor will likely be more interested in a company's earnings.

Accepted Answer

A) True 
 B)False

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

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 stewardship function is reflected by:

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

External decision-makers include all of the following except:

Which of the following is NOT a primary source of GAAP?

Do you think that most companies in the oil sector would adopt expanded disclosure policies or simply adhere to minimum compliance requirements? Explain.

A disclosed basis of accounting is acceptable if a company's financial statements are prepared solely for internal use.

General-purpose financial statements report financial information relevant to:

Income tax deferral is illegal in Canada.

Explain the differences between the adoption, adaption and convergence of accounting standards.

Give two reasons why managers may have a bias toward smoothing earnings, and give two examples stating how this is achieved in practice.

A company whose net income is highly correlated to its operating cash flows is said to have a high quality of earnings.

The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS.

Canada has adapted its own pre-existing standards for public companies to IFRS, while the U.S has adopted IFRS completely.

The users toward which financial statements are directed:

During the coming years, we should expect the ACSB to:

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

The body that has the responsibility to set generally accepted accounting principles in Canada is the:

Different stakeholders have different reporting requirements with respect to general-purpose financial statements. A lender will be more interested in a company's cash flows while an investor will likely be more interested in a company's earnings.

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 1: The Framework for Financial Reporting

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

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 stewardship function is reflected by:

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

External decision-makers include all of the following except:

Which of the following is NOT a primary source of GAAP?

Do you think that most companies in the oil sector would adopt expanded disclosure policies or simply adhere to minimum compliance requirements? Explain.

A disclosed basis of accounting is acceptable if a company's financial statements are prepared solely for internal use.

General-purpose financial statements report financial information relevant to:

Income tax deferral is illegal in Canada.

Explain the differences between the adoption, adaption and convergence of accounting standards.

Give two reasons why managers may have a bias toward smoothing earnings, and give two examples stating how this is achieved in practice.

A company whose net income is highly correlated to its operating cash flows is said to have a high quality of earnings.

The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS.

Canada has adapted its own pre-existing standards for public companies to IFRS, while the U.S has adopted IFRS completely.

The users toward which financial statements are directed:

During the coming years, we should expect the ACSB to:

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

The body that has the responsibility to set generally accepted accounting principles in Canada is the:

Different stakeholders have different reporting requirements with respect to general-purpose financial statements. A lender will be more interested in a company's cash flows while an investor will likely be more interested in a company's earnings.

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters