broad group of outsiders as one of its primary businesses.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-02 Describe how
accounting standards in Canada are
tailored to different types of
organizations.
9.
Award: 10.00 points
10.
Award: 10.00 points
Which of the following organizations are required to use only the IFRS (Part I) in Canada?
All corporations, government agencies and private companies.
Public companies and private companies whose shareholders' equity is in excess of
$500,000,000 at any particular year-end.
Public companies, private companies and not-for-profit organizations.
Government business enterprises.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-03 Identify some
of the differences between IFRS and
ASPE.
Which of the following statements pertaining to Not-for-Profit-Organizations (NFPO) is INCORRECT?
A government NFPO has the choice to follow either the 4200 series of the CPA Canada
Public Sector Accounting (PSA) Handbook or the PSA Handbook without the 4200 series.
A non-government NFPO has a choice to follow Part I (IFRS) or Part III of the CPA Canada
Handbook .
A government NFPO has a choice to follow Part I (IFRS) of the CPA Canada Handbook or
the CPA Canada Public Sector Accounting Handbook .
A non-government NFPO that applies Part III of the CPA Canada Handbook will also apply
relevant sections from Part II (ASPE) of the CPA Canada Handbook .
References
Multiple Choice Difficulty: Easy Learning Objective: 01-03 Identify some
of the differences between IFRS and
ASPE.
11.
Award: 10.00 points
12.
Award: 10.00 points
For which of the following types of organizations does the CPA Canada Handbook NOT provide
specific accounting standards?
Publicly accountable enterprises.
Private enterprises.
Not-for-profit organizations.
Proprietorships.
References
Multiple Choice Learning Objective:
01-02 Describe how
accounting
standards in Canada
are tailored to
different types of
organizations.
Difficulty: Easy Learning Objective:
01-03 Identify some
of the differences
between IFRS and
ASPE.
Which of the following is NOT a reason why a Canadian private company would elect to report
under IFRS?
The company is planning to go public in the near future.
The company seeks comparability with public companies of a similar size.
It is likely to be less expensive than reporting under ASPE.
The company is a subsidiary of a Canadian public company.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-02 Describe how
accounting standards in Canada are
tailored to different types of
organizations.
13.
Award: 10.00 points
14.
Award: 10.00 points
The current ratio measures:
liquidity.
solvency.
profitability of assets.
profitability of owners' investment.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-04 Analyze and
interpret financial statements to assess
the impact of different accounting
methods on key financial statements
ratios.
The formula for the current ratio is:
current assets - current liabilities
current assets/current liabilities
total debt/shareholders' equity
net income/shareholders' equity
References
Multiple Choice Difficulty: Easy Learning Objective: 01-04 Analyze and
interpret financial statements to assess
the impact of different accounting
methods on key financial statements
ratios.
15.
Award: 10.00 points
16.
Award: 10.00 points
The debt-to-equity ratio measures:
liquidity.
solvency.
profitability of assets.
profitability of owners' investment.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-04 Analyze and
interpret financial statements to assess
the impact of different accounting
methods on key financial statements
ratios.
Which three major skills must be demonstrated to be successful as an accountant?
Knowledge, creativity and organization.
Creativity, mathematical skills and adaptability.
Knowledge, critical thinking and organization.
Creativity, professionalism and interpersonal skills.
References
Multiple Choice Difficulty: Easy Learning Objective: 01-05 (Appendix A)