Question 1

Privately held, publicly accountable companies with a fiduciary responsibility must comply with IFRS.

Accepted Answer

A) True 
 B)False  True

Question 2

The International Accounting Standards Committee (IASC), established in 1973 has the objective to promote the worldwide harmonization of accounting principles. Is this harmonization necessary to allow movement of capital between countries?

Accepted Answer

Although there is pressure from securities regulators and public accountants to harmonize worldwide accounting standards, there is little evidence to suggest that such harmonization is needed in order to facilitate the international movement of capital.

Question 3

Generally accepted accounting principles currently are promulgated primarily by the:

Accepted Answer

A)  Canadian Academic Accounting Association (CAA
A) . 
B)  Canada Customs and Revenue Agency. 
C)  Ontario Securities Commission (OS
C) . 
D)  Accounting Standards Board (AcS
B) . 
A)  Canadian Academic Accounting Association (CAA
A) . 
B)  Canada Customs and Revenue Agency. 
C)  Ontario Securities Commission (OS
C) . 
D)  Accounting Standards Board (AcS
B) . D

Question 4

Cash flow prediction is a common internal user reporting objective.

Accepted Answer

A) True 
 B)False

Question 5

The accounting standards for private enterprises (ASPE) are essentially a scaled-down version of the CPA Handbook, which is available to all small and medium sized enterprises with no fiduciary responsibility.

Accepted Answer

A) True 
 B)False

Question 6

Developments in accounting standards have not addressed the problem of using accounting techniques to smooth earnings.

Accepted Answer

A) True 
 B)False

Question 7

IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).

Accepted Answer

A) True 
 B)False

Question 8

A wholly-owned subsidiary of a multinational corporation is essentially a private corporation.

Accepted Answer

A) True 
 B)False

Question 9

FASB and International Accounting Standards are secondary sources of GAAP.

Accepted Answer

A) True 
 B)False

Question 10

Which of these following is NOT true regarding generally accepted accounting principles?

Accepted Answer

A)  Include specific rules, practices and procedures. 
B)  Include broad principles and conventions of general applications including underlying concepts 
C)  Standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor. 
D)  The GAAP requirement for Private companies is enforceable by the provincial securities commissions. 
A)  Include specific rules, practices and procedures. 
B)  Include broad principles and conventions of general applications including underlying concepts 
C)  Standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor. 
D)  The GAAP requirement for Private companies is enforceable by the provincial securities commissions.

Question 11

Mutual fund companies, which may be privately held, are deemed to have a fiduciary responsibility and must therefore comply with IFRS.

Accepted Answer

A) True 
 B)False

Question 12

The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies.

Accepted Answer

A) True 
 B)False

Question 13

Disclosure notes facilitate the evaluation of enterprise position and performance because they include information, which helps to explain qualitative aspects of earnings.

Accepted Answer

A) True 
 B)False

Question 14

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,

Question 15

In Canada, IFRS standards were essentially converged with Canadian GAAP.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

Lending institutions such as banks are most interested in a company's profitability ratios.

Accepted Answer

A) True 
 B)False

Question 19

A company's functional currency is always the currency in which the financial statements are presented.

Accepted Answer

A) True 
 B)False

Question 20

The stewardship function refers to:

Accepted Answer

A)  Disclosing management's use of funds and other financial information to absentee shareholders. 
B)  A company's corporate citizenship track record. 
C)  The collection of information for planning the future of the entity, implementing those plans, and for controlling daily operations. 
D)  The collection of information to help present and potential investors and creditors and other users in assessing the amounts, timing and uncertainty of prospective cash receipts. 
A)  Disclosing management's use of funds and other financial information to absentee shareholders. 
B)  A company's corporate citizenship track record. 
C)  The collection of information for planning the future of the entity, implementing those plans, and for controlling daily operations. 
D)  The collection of information to help present and potential investors and creditors and other users in assessing the amounts, timing and uncertainty of prospective cash receipts.

Privately held, publicly accountable companies with a fiduciary responsibility must comply with IFRS.

The International Accounting Standards Committee (IASC), established in 1973 has the objective to promote the worldwide harmonization of accounting principles. Is this harmonization necessary to allow movement of capital between countries?

Generally accepted accounting principles currently are promulgated primarily by the:

Cash flow prediction is a common internal user reporting objective.

The accounting standards for private enterprises (ASPE) are essentially a scaled-down version of the CPA Handbook, which is available to all small and medium sized enterprises with no fiduciary responsibility.

Developments in accounting standards have not addressed the problem of using accounting techniques to smooth earnings.

IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).

A wholly-owned subsidiary of a multinational corporation is essentially a private corporation.

FASB and International Accounting Standards are secondary sources of GAAP.

Which of these following is NOT true regarding generally accepted accounting principles?

Mutual fund companies, which may be privately held, are deemed to have a fiduciary responsibility and must therefore comply with IFRS.

The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies.

Disclosure notes facilitate the evaluation of enterprise position and performance because they include information, which helps to explain qualitative aspects of earnings.

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?

In Canada, IFRS standards were essentially converged with Canadian GAAP.

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

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.

Lending institutions such as banks are most interested in a company's profitability ratios.

A company's functional currency is always the currency in which the financial statements are presented.

The stewardship function refers to:

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

Privately held, publicly accountable companies with a fiduciary responsibility must comply with IFRS.

The International Accounting Standards Committee (IASC), established in 1973 has the objective to promote the worldwide harmonization of accounting principles. Is this harmonization necessary to allow movement of capital between countries?

Generally accepted accounting principles currently are promulgated primarily by the:

Cash flow prediction is a common internal user reporting objective.

The accounting standards for private enterprises (ASPE) are essentially a scaled-down version of the CPA Handbook, which is available to all small and medium sized enterprises with no fiduciary responsibility.

Developments in accounting standards have not addressed the problem of using accounting techniques to smooth earnings.

IFRS standards may be modified to allow for a disclosed basis of accounting (DBA).

A wholly-owned subsidiary of a multinational corporation is essentially a private corporation.

FASB and International Accounting Standards are secondary sources of GAAP.

Which of these following is NOT true regarding generally accepted accounting principles?

Mutual fund companies, which may be privately held, are deemed to have a fiduciary responsibility and must therefore comply with IFRS.

The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies.

Disclosure notes facilitate the evaluation of enterprise position and performance because they include information, which helps to explain qualitative aspects of earnings.

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?

In Canada, IFRS standards were essentially converged with Canadian GAAP.

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

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.

Lending institutions such as banks are most interested in a company's profitability ratios.

A company's functional currency is always the currency in which the financial statements are presented.

The stewardship function refers to:

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