Question 1

Financial accounting can be broadly defined as the area of accounting that prepares financial statements to be used

Accepted Answer

A)  by parties internal to the business enterprise only.
B)  by investors only.
C)  by parties both internal and external to the business enterprise.
D)  primarily by management.

Question 2

Financial accounting is concerned with the process that culminates in

Accepted Answer

A)  the preparation of financial reports.
B)  specialized reports for inventory management and control.
C)  specialized reports for income tax calculation and recognition.
D)  reports on changes in stock prices and future estimates of market position.

Question 3

Which of the following is not a stakeholder in the Canadian Financial Reporting Environment?

Accepted Answer

A)  Investors
B)  Creditors
C)  Auditors
D)  All of these are stakeholders

Question 4

The information provided by financial reporting pertains to

Accepted Answer

A)  individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers.
B)  business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers.
C)  individual business enterprises, industries, and an economy as a whole, rather than to
D)  an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

Question 5

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

Accepted Answer

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

Question 6

The Sarbanes-Oxley Act (SOX)  was not enacted to

Accepted Answer

A)  Help prevent fraud and poor financial reporting practices.
B)  Ensure the act was applied internationally.
C)  Enable the SEC to increase its policing efforts.
D)  Introduce new independence rules for auditors

Question 7

Which of the following are major factors in the rapidly changing financial reporting environment in Canada?

Accepted Answer

A)  Increased demand for accountants and the impact of technology
B)  Globalization and the unethical actions of accountants
C)  The growing number of institutional investors and the knowledge based economy
D)  All of these

Question 8

The widely publicized subprime lending crisis was not caused by

Accepted Answer

A)  Capital market participants who acted in their own self-interest.
B)  A lack of transparency.
C)  A lack of investor understanding of the investment's true risk.
D)  The practice of securitizing assets.

Question 9

Which of the following statements is not an objective of financial reporting?

Accepted Answer

A)  Provide information that is useful to users in making resource allocation decisions.
B)  Provide information about an entity's economic resources, obligations, and equity/net assets.
C)  Provide information on the liquidation value of an enterprise.
D)  Provide information about changes in an entity's economic resources, obligations, and equity/net assets.

Exam 1: The Canadian Financial Reporting Environment

The Sarbanes-Oxley Act (SOX) was not enacted to

Correct Answer
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Financial accounting is concerned with the process that culminates in

Correct Answer
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Which of the following is not a stakeholder in the Canadian Financial Reporting Environment?

Correct Answer
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Which of the following are major factors in the rapidly changing financial reporting environment in Canada?

Correct Answer
verified

The widely publicized subprime lending crisis was not caused by

Correct Answer
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Which of the following statements is not an objective of financial reporting?

Correct Answer
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The information provided by financial reporting pertains to

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

Correct Answer
verified

Financial accounting can be broadly defined as the area of accounting that prepares financial statements to be used

Correct Answer
verified

Exam 1: The Canadian Financial Reporting Environment

The Sarbanes-Oxley Act (SOX) was not enacted to

Correct AnswerverifiedShow Answer

Financial accounting is concerned with the process that culminates in

Correct AnswerverifiedShow Answer

Which of the following is not a stakeholder in the Canadian Financial Reporting Environment?

Correct AnswerverifiedShow Answer

Which of the following are major factors in the rapidly changing financial reporting environment in Canada?

Correct AnswerverifiedShow Answer

The widely publicized subprime lending crisis was not caused by

Correct AnswerverifiedShow Answer

Which of the following statements is not an objective of financial reporting?

Correct AnswerverifiedShow Answer

The information provided by financial reporting pertains to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Financial accounting can be broadly defined as the area of accounting that prepares financial statements to be used

Correct AnswerverifiedShow Answer

Correct Answer
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