Example Test Questions Chapter 1 Multiple Choice: 1. Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States? a. Securities and Exchange Commission b. Financial Accounting Standards Board c. International Accounting Standards Committee d. Internal Revenue Service Answer a 2. What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century? a. The Iliad b. Plato ’s Republic
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How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31‚ 2010? a. What assets and liabilities should be included in the “asset group” as defined by ASC 360-10 for purpose of performing the recoverability test? i. FASB ASC paragraph 360-10-35-23 states that for measuring an impairment loss‚ long-lived assets should be group with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent
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not record the estimated returns considering it would be immaterial‚ and (3) Revenue recognition should be deferred until the payment is made. We have searched FASB codification by using the key work “right of return”. In addition‚ we have researched Codification topics 605 Revenue Recognition. Four relevant hits have been found. FASB ASC 605-15-15-2 states that sales in which a product may be returned‚ whether as a matter of contract or as a matter of existing practice‚ either by the ultimate customer
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Bloom‚ R. & Kamm‚ J. (2014). Revenue Recognition‚ How we got here and where it will take us. Financial Executive (3). 48. Retrieved from: http://www.financialexecutives.org FASB‚ (Financial Accounting Standards Board). (n.d.) Accounting Standards Codification (ASC). Retrieved February 2015‚ from FASB Accounting Standards Codification database. Kieso‚ D.E.‚ Warfield‚ T.D.‚ & Wegandt‚ J.J. (2010). Intermediate Accounting. Hoboken‚ New Jersey: John Wiley & Sons‚ Inc. Work Accomplished Marc Friedman – Presented
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April 17‚ 2012 Grimwald Glenshaw‚ CFO Pumpjack Petrol‚ Ltd. 18111 Nordhoff Street Northridge‚ CA 91340 Dear Mr. Glenshaw: Upon your request‚ I have researched the codifications on how to account for the future dismantling cost of the oil platform and for downward adjustments to the expected cost. The asset retirement obligation (ARO) of $2‚158‚925 for the platform must be recognized on its acquisition date in 2014 and discounted to its fair value of $999‚999. However‚ if there is a downward
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CHAPTER 1 FINANGIAL ACCOUNTING AND ACCOUNTING STANDARDS OVERVIEW Accounting is the language of business. As such‚ accountants collect and communicate economic information about business enterprises or other entities to a wide variety of persons. To be useful‚ financial statements must be clearly understandable and comparable so that users may compare the performance of one business with the performance of the same business for a prior period or with the performance of another similar business
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Cited: "IAS 17 - Leases." IAS Plus. Web. 25 Mar. 2015. <http://www.iasplus.com/en/standards/ias/ias17>. "ASC 840." Accounting Standards Codification. FASB. Web. 25 Mar. 2015. <https://asc.fasb.org/subtopic&trid=2208924>.
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analysis ASC 810‚ Consolidation‚ as amended by ASU 2009-17 Introduction A reporting entity must assess whether its involvement with another legal entity requires the reporting entity to consolidate that legal entity and / or provide disclosures in accordance with guidance for variable interest entities. This bulletin outlines a reporting entity’s step-by-step approach to the assessment of its involvement with TM a legal entity under the guidance in FASB Accounting Standards Codification (ASC) 810-10
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Chapter 7: Cash and Receivables When looking at the FASB codification‚ there are two main sections to examine about the transfers of receivables. The first section is 860-10 Transfers and Servicing‚ and the second section to consider would be 310-10 which is Receivables Overall. When finding other examples of continuing involvement‚ I looked into section 860-10-55. In section 860-10-10-1 it listed the objectives for reporting transfers of receivables. When searching for these objectives‚ it
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Financial Accounting Standards Board (FASB) requires an investor to document at acquisition the classification of an equity security. [FASB 320-10-25] The FASB requires entities to explain within their financial statements the rights and privileges of outstanding securities. [FASB 505-50-30] If there were any common stock dividends both Kroger and Goodbread would have to recognize the dividend on their taxes
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