Intermediate Accounting Volume 1, 13th Canadian Edition by Donald E. Kieso Test bank

 
29. As of 2011, the responsibilities of the Accounting Standards Board (AcSB) in Canada relate to setting standards for
a) publicly accountable entities only.
b) both publicly accountable entities and private enterprises.
c) private enterprises, not-for-profit entities, and pension plans.
d) not-for-profit entities and pension plans only.
 
Answer: c
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Audit & Assurance
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
30. In Canada, the body that has the responsibility of overseeing the Accounting Standards Board (AcSB) is the
a) Accounting Standards Oversight Council (AcSOC).
b) International Accounting Standards Board (IASB).
c) Canadian Institute of Chartered Accountants (CICA).
d) Financial Accounting Standards Board (FASB).
 
Answer: a
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
31. In the United States, the body that has the final authority over accounting standards is the
a) Financial Accounting Standards Board (FASB).
b) International Accounting Standards Board (IASB).
c) Securities Exchange Commission (SEC).
d) Accounting Standards Oversight Council (AcSOC).
 
Answer: c
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
32. The adoption of International Financial Reporting Standards in Canada is an example of
a) the impact of technology on user's needs.
b) the impact of globalization on capital markets.
c) ethical behaviour.
d) the desire of most private companies to expand internationally.
 
Answer: b
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
33. Which of the following statements does NOT describe the activities and authority of the Ontario Securities Commission (OSC)?
a) The OSC reviews and monitors the financial statements of companies whose shares are listed on the Toronto Stock Exchange.
b) The OSC issues its own disclosure requirements for listed companies.
c) The OSC has the ability to fine or delist companies.
d) The OSC issues financial accounting standards for Canadian companies.
 
Answer: d
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
34. Which of the following does NOT support the use of Accounting Standards for Private Enterprises (ASPE)?
a) Private enterprises usually have less complex business models.
b) Private enterprises that are “going public.”
c) Private enterprises usually have fewer users.
d) Private enterprises’ financial statement users tend to have first-hand information.
 
Answer: b
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting
Bloomcode: Knowledge
AACSB: Analytic
 
 
35. Which of the following does NOT describe a step in the IASB’s standard-setting process?
a) appointing trustees to the IFRS Foundation
b) development of an exposure draft
c) provision of strategic advice by the IFRS Advisory Council
d) public consultation
 
Answer: a
 
Difficulty: Easy
Learning Objective: Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Section Reference: Standard Setting
CPA: Financial Reporting