Test Bank For - 2) 14 th Canadian Edition By Kieso, Weygandt, W...

Test Bank For Intermediate Accounting (Volume 2) 14 th Canadian Edition By Kieso, Weygandt, Warfield, Wiley, Wiecek, McConomy

(All Chapters 13-23, 100% Original Verified, A+ Grade)

All Chapters Arranged Reverse:

23-13

This is The Original Test Bank For 14 th Canadian Edition, All other Files in The Market are Fake/Old/Wrong Edition. 1 / 4

Intermediate Accounting, 14Ce (Kieso) Chapter 23 Other Measurement and Disclosure Issues 1) Which of the following items found in an annual report is NOT subject to GAAP?

• financial statements
• management's discussion and analysis
• inventory methods
• accounting policies

Answer: B

Diff: 1

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Knowledge

AACSB: Analytic

2) Reasons for increased disclosure requirements do NOT include

• the current government trend toward reducing income taxes.
• the necessity for timely information.
• the complexity of the business environment.
• accounting as a control and monitoring device.

Answer: A

Diff: 1

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Knowledge

AACSB: Analytic

3) Which of the following does NOT need be disclosed in a Summary of Significant Accounting Policies?

• inventory valuation method(s)
• revenue recognition method(s)
• depreciation and amortization method(s)
• claims of shareholders

Answer: D

Diff: 1

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Knowledge

AACSB: Analytic

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4) Errors and irregularities are defined as intentional distortions of facts. Yes or No?

• Errors - yes; Irregularities - yes
• Errors - yes; Irregularities - no
• Errors - no; Irregularities - yes
• Errors - no; Irregularities - no

Answer: C

Diff: 2

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Application

AACSB: Analytic

5) Which of the following facts concerning property, plant, and equipment should be included in the Summary of Significant Accounting Policies?

• Depreciation Method - no; Composition of Assets - yes
• Depreciation Method - yes; Composition of Assets - yes
• Depreciation Method - yes; Composition of Assets - no
• Depreciation Method - no; Composition of Assets - no

Answer: C

Diff: 2

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Application

AACSB: Analytic

6) Which of the following is INCORRECT regarding the notes to the financial statements?

• The notes are often overlooked because they are highly technical.
• The notes are management's means of amplifying items presented in the statements.
• The notes present information that is not included in the financial statements.
• The notes often have limited value for users.

Answer: D

Diff: 1

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Knowledge

AACSB: Analytic

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7) Which of the following statements best describes the difference in the disclosure requirements between IFRS and ASPE?

• The disclosure requirements are generally the same under both IFRS and ASPE.
• The disclosure requirements for publicly traded companies have increased substantially in the

past two decades.

• The disclosure requirements are more pervasive under ASPE.
• Privately held companies using IFRS do not need to adhere to the same reporting disclosure

requirements as publicly traded companies.

Answer: B

Diff: 1

Learning Objective: Review the full disclosure principle and how it is implemented, and explain how companies use accounting policy notes.

Section Reference: Full Disclosure Principle

CPA: Financial Reporting

Bloomcode: Knowledge

AACSB: Analytic

8) According to IFRS, an operating segment is a reportable segment if

• its operating profit is 10% or more of the combined operating profit of profitable segments

only.

• its operating loss is 10% or more of the combined operating losses of segments that incurred

an operating loss.

• the absolute amount of its operating profit or loss is 10% or more of the greater, in absolute

amount, of (a) the combined reported operating profit of all operating segments that incurred a loss, and (b) the combined reported profit of all operating segments that did report a profit.

• the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute

amount, of (a) the combined reported operating profit of all operating segments that did not incur a loss, or (b) the combined reported loss of all operating segments that did report a loss.

Answer: D

Diff: 2

Learning Objective: Describe the disclosure requirements for major segments of a business.

Section Reference: Segmented Reporting

CPA: Financial Reporting

Bloomcode: Comprehension

AACSB: Analytic

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