CH 2 Review

Question 1

Is the codification authoritative GAAP or non authoritative GAAP

Answer 1

authoritative

Question 2

Codification is considered the sole source of authoritative GAAP for ________________ entities

Answer 2

non governmental

Question 3

what is the purpose of the codification

Answer 3

simplify research

Question 4

nongovernmental entities include what

Answer 4

public and nonpublic companies

Question 5

authoritative guidance must be followed for entities to receive _________________

Answer 5

an unmodified opinion

Question 6

what are some of the source material for the codification

Answer 6

FASB, CAP and APB, EITF, Derivatives Implementation Group, AICPA

Question 7

Source material used to write the Codification was ______ when it became effective

Answer 7

superseded

Question 8

Accounting Standards Updates (ASU)

Answer 8

used to update the codification (from FASB)

Question 9

are ASUs authoritative

Answer 9

not in their own right

Question 10

SEC guidance included int he Codification is _________ for public companies

Answer 10

authoritative

Question 11

SEC guidance included int he Codification is _________ for private companies

Answer 11

not authoritative

Question 12

the FASB recommends that users primarily search using the _______ “browse” feature

Answer 12

user-directed

Question 13

have to understand _______ to use browse search

Answer 13

how codification is organized

Question 14

how is the codification organized? (sections most broad to least)

Answer 14

• areas
• topics
• subtopics
• sections
• subsections
• paragraphs

Question 15

the _________ area of the codification included guidance on broad conceptual matters

Answer 15

general principles

Question 16

the _________ area included guidance on how information is “presented on the financial statements

Answer 16

presentation

Question 17

the _________ are includes guidance for specific transactions, or issues involving multiple financial statement accounts

Answer 17

broad transactions

Question 18

the _________ area includes topics where the accounting is unque for an industry or activity

Answer 18

industry

Question 19

industry- specific guidance should be applies ____________ other general requirements of the Cod

Answer 19

in addition to

Question 20

each topic is organized into one or several _________

Answer 20

Subtopics

Question 21

many topics contain and “overall” subtopic with guidance that is _______ to the topic

Answer 21

pervasive

Question 22

what section of the codification describes at what value a FS item should be initially reported

Answer 22

initial measurement

Question 23

what section of the cod provides guidance on how to change the value of an item after it is initially recorded

Answer 23

subsequent measurement

Question 24

what section of the cod describes when and how a recorded item should be removed from the financial statements

Answer 24

derecognition

Question 25

what section of the cod provided additional guidance on how the transaction should be presented in the FS

Answer 25

other presentation matters

Question 26

what section number is initial measurement

Answer 26

30

Question 27

what section number is subsequent measurement

Answer 27

35

Question 28

what section number is derecognition

Answer 28

40

Question 29

what section number is other presentation matter

Answer 29

45

Question 30

what section number is disclosures

Answer 30

50

Question 31

what section number is implementation guidance, illustrations

Answer 31

55

Question 32

what section number is "s" section

Answer 32

s-xx

Question 33

what section of the codification provides disclosure requirements for a particular transaction or financial statement item

Answer 33

disclosure

Question 34

what section of the codification includes 1. interpretive guidance describing how the guidance should be applied to specific scenarios and 2. illustrative examples

Answer 34

implementation guidance, illustrations

Question 35

what section of the cod provides select SEC guidance, generally organized into sections similar to those described above

Answer 35

"S' section

Question 36

___________ are where actual guidance is found within the codification

Answer 36

paragraphs

Question 37

paragraphs are often organized into groups called ______

Answer 37

subsections

Question 38

what are the required reading areas for browse searches

Answer 38

- confirm that the transaction is within scope - find guidance that appears to be on point - read any preceding paragraphs that are related - skin the rest of the section for other potentially relevant guidance - check for relevant headings int he implementation guidance section public companies: determine whether sec guidance is available for the section you are searching

Question 39

what are some other ways (besides browse search) to search the codification

Answer 39

-keyword -ASC number - cross reference - master glossary

Question 40

What is a keyword search

Answer 40

based off of specific language

Question 41

must use proper _________ in a key word search

Answer 41

search terms

Question 42

what is a search term

Answer 42

terms used in guidance

Question 43

keyword searches can involve some ___________

Answer 43

trial and error

Question 44

when is a keyword search the most useful

Answer 44

looking for a specific term in the guidance

Question 45

when is searching by ASC number useful

Answer 45

when you already know the codification paragraph you're searching for

Question 46

when is using the cross reference feature

Answer 46

when you need to locate original standards or in circumstances where you know the original standard and need to determine what codification topic the standard ties to

Question 47

use the __________________- to find definitions of specific terms and links to related guidance

Answer 47

the master glossary

Question 48

use _____________ to link Cod topics to original standards

Answer 48

cross reference feature

Question 49

when ASUs issued by FASB theyre added as __________

Answer 49

pending content

Question 50

private company castle (PCC)

Answer 50

an advisory body to the FASB, recently made progress to simplify private company GAAP

Question 51

the PCC (working with FASB) has created private company _________ in the Cod

Answer 51

accounting alternatives

Question 52

application of PCC accounting alternatives is _________

Answer 52

optional