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Beechy, Conrod & Farrell Intermediate Accounting Fifth Edition, Volume 1 – Test Bank
Chapter 1 – The Framework for Financial Reporting
Ans: True
Difficulty: Easy
Level of Learning: Knowledge
Topic: LO 5
Ans: True
Difficulty: Easy
Level of Learning: Knowledge
Topic: LO 5
hz
3. External users of a company’s financial statements may have conflicting objectives.
Ans: True
Difficulty: Easy
Level of Learning: Knowledge
zle
Topic: LO 5
4. Both private and publicly accountable companies must comply with IFRS beginning on
January 1, 2011.
Ans: False
d
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 7
Ans: True
Difficulty: Hard
Level of Learning: Knowledge
Topic: LO 7
6. Mutual fund companies, which may be privately held, are deemed to have a fiduciary
responsibility and must therefore comply with IFRS.
Ans: True
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 7
7. Canadian companies must always present their financial results in Canadian dollars.
Ans: False
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 2
Ans: True
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 7
d
Ans: True
Difficulty: Hard
Level of Learning: Knowledge
Topic: LO 7
11. The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting
policies by private companies.
Ans: True
Difficulty: Medium
Ans: True
Difficulty: Easy
Level of Learning: Knowledge
Topic: LO 7
13. The accounting standards for private enterprises (ASPE) are essentially a scaled-down version of
the CICA handbook, which is available to all small and medium sized enterprises with no
fiduciary responsibility.
Ans: True
hz
Difficulty: Hard
Level of Learning: Knowledge
Topic: LO 7
14. Accounting concepts, principles and standards are just as broad and general today as they were
sixty years ago.
zle
Ans: False
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 7
15. The influence of tax rules when selecting appropriate accounting treatment for a transaction is
d
particularly strong with public companies.
Ans: False
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 7
16. Due to the excellent work of the ACSB, there are very few choices among alternative accounting
policies today.
Ans: False
Difficulty: Medium
Level of Learning: Knowledge
Topic: LO 3
Language: English