Financial Accounting Standards Board Codification Test! Trivia Quiz

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Financial Accounting Standards Board Codification Test! Trivia Quiz - Quiz

Are you an accountant who is trying to see how well they understand the Financial Accounting Standards Board Codifications? In order to ensure that your records are not misstatement, you need to follow the guidelines put in place by both the local and international bodies. Take this test and get to see how qualified you are based on your knowledge.


Questions and Answers
  • 1. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) for this class activity, respond to the following question: CODE-Q1 The codification was first published as of July 1, 2009. It is effective for interim or annual periods ending after:

    • A.

      June 30, 2009

    • B.

      July 1, 2009

    • C.

      Sept 15, 2009

    • D.

      Dec 31, 2009

    Correct Answer
    C. Sept 15, 2009
    Explanation
    The codification was first published as of July 1, 2009. The question asks for the effective date of the codification for interim or annual periods ending after the publication date. Therefore, the correct answer is Sept 15, 2009, as it is the only option that falls after July 1, 2009.

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  • 2. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) for this class activity, respond to the following question: CODE-Q2 The Codification supersedes which levels of the previous accounting hierarchy:

    • A.

      Level A

    • B.

      Level B

    • C.

      Level C

    • D.

      Level D

    • E.

      All Levels are superseded

    Correct Answer
    E. All Levels are superseded
    Explanation
    The Codification supersedes all levels of the previous accounting hierarchy. This means that the Codification replaces and overrides Level A, Level B, Level C, and Level D of the previous accounting hierarchy. The Codification is a comprehensive and authoritative source of accounting standards, and it is designed to simplify and streamline the accounting literature by consolidating all relevant guidance into one centralized system. By superseding all levels of the previous accounting hierarchy, the Codification ensures consistency and clarity in accounting standards.

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  • 3. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) for this class activity, respond to the following question: CODE-Q3 Which one is NOT one of the primary goals of the Codification

    • A.

      Create a codification research system that is up to date for the released results of standard-setting activity.

    • B.

      Simplify user access by codifying all authoritative US GAAP in one spot.

    • C.

      Converge international accounting standards

    • D.

      Ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009.

    • E.

      None, ALL answers above are PRIMARY GOALS of the CODIFICATION

    Correct Answer
    C. Converge international accounting standards
    Explanation
    The correct answer is "Converge international accounting standards". This is not one of the primary goals of the Codification. The primary goals of the Codification are to create a codification research system that is up to date for the released results of standard-setting activity, to simplify user access by codifying all authoritative US GAAP in one spot, and to ensure that the codified content accurately represents authoritative US GAAP as of July 1, 2009.

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  • 4. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) [Lesson 1, p.2] for this class activity, respond to the following question: CODE-Q4 Relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance have been included for reference in the Codification.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The given answer is true. According to the assigned reading, relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance have been included for reference in the Codification. This means that the Codification includes important information and guidance from the SEC, making the answer "True" correct.

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  • 5. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) [Lesson 1, p.5]  for this class activity, respond to the following question: CODE-Q5 The STRUCTURE of the CODIFICATION includes all the following, EXCEPT:

    • A.

      Section

    • B.

      Topic

    • C.

      Sub-Topic

    • D.

      Section

    • E.

      Area

    • F.

      Line

    Correct Answer
    F. Line
    Explanation
    The correct answer is "Line" because the structure of the codification includes sections, topics, sub-topics, sections, and areas, but it does not include lines.

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  • 6. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) [Lesson 2, p.12]  for this class activity, respond to the following question: CODE-Q6 Under the "Identifying Relevant Areas" section, the document provides the following "time-saving" tips, EXCEPT:

    • A.

      The General Principles Area relates to broad conceptual matters.

    • B.

      The Assets, Liabilities, and Equity Areas contain guidance about specific individual balance sheet accounts (e.g., cash, accounts payable, additional paid-in capital).

    • C.

      The Broad Transactions Area contains guidance about to multiple financial statement accounts.

    • D.

      The Revenue and Expenses Areas contain guidance about specific individual balance sheet accounts (e.g., sales revenue, employee compensation).

    • E.

      The Industry Area contains guidance about to a specific industry or type of activity.

    Correct Answer
    D. The Revenue and Expenses Areas contain guidance about specific individual balance sheet accounts (e.g., sales revenue, employee compensation).
    Explanation
    The document provides tips for identifying relevant areas, but it specifically states that the Revenue and Expenses Areas do not contain guidance about specific individual balance sheet accounts. Therefore, the correct answer is that the Revenue and Expenses Areas contain guidance about specific individual balance sheet accounts (e.g., sales revenue, employee compensation).

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  • 7. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) [Lesson 2, p.13]  for this class activity, respond to the following question: CODE-Q7 The NUMBERING of the AREAS of the CODIFICATION includes all the following, EXCEPT:

    • A.

      200's for PRESENTATION

    • B.

      400's for LIABILITIES

    • C.

      500's for EXPENSES

    • D.

      600's for REVENUES

    • E.

      800's for BROAD TRANSACTIONS

    • F.

      ALL are included

    Correct Answer
    C. 500's for EXPENSES
    Explanation
    The correct answer is 500's for EXPENSES. According to the assigned reading, the numbering of the areas of the codification includes 200's for PRESENTATION, 400's for LIABILITIES, 600's for REVENUES, and 800's for BROAD TRANSACTIONS. Therefore, the 500's for EXPENSES is not included in the numbering of the areas of the codification.

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  • 8. 

    Based on your assigned reading (https://sites.google.com/site/thecodification/grading) [Lesson 3, p.23] for this class activity, respond to the following question: CODE-Q8 The Standardized Codification Sections include all the following (check all that apply):

    • A.

      XXX-YY-30 Initial Measurement

    • B.

      XXX-YY-05 Status

    • C.

      XXX-YY-10 Objectives

    • D.

      XXX-YY-50 Disclosure

    Correct Answer(s)
    A. XXX-YY-30 Initial Measurement
    C. XXX-YY-10 Objectives
    D. XXX-YY-50 Disclosure
    Explanation
    The correct answer is XXX-YY-30 Initial Measurement, XXX-YY-10 Objectives, XXX-YY-50 Disclosure. This is because these sections are mentioned in the given options and are included in the Standardized Codification Sections. The other option, XXX-YY-05 Status, is not mentioned in the given options and therefore is not included in the Standardized Codification Sections.

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  • 9. 

    CODE-Q9 What AREA: TOPIC-SUBTOPIC-SECTION (XXX-YY-ZZ) relate to the following citation: ASC 605-10-25

    • A.

      INCOME STATEMENT: Revenue Recognition - Overall - Recognition

    • B.

      REVENUES: Revenue Recognition - Overall - Recognition

    • C.

      REVENUES: Recognition - Overall - Revenue Recognition

    • D.

      None of the above

    Correct Answer
    B. REVENUES: Revenue Recognition - Overall - Recognition
    Explanation
    The given citation "ASC 605-10-25" refers to the specific section in the accounting standards that deals with revenue recognition. Among the given options, the answer "REVENUES: Revenue Recognition - Overall - Recognition" is the one that best relates to the citation. It aligns with the topic, subtopic, and section mentioned in the question.

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  • 10. 

    Based on your assigned reading (https://asc.fasb.org/precod) for this class activity, respond to the following question: CODE-Q0 Prior to The codification, GAAP was issued via several pronouncements, including the following (check all that apply):

    • A.

      Statements of Financial Accounting Standards (SFAC)

    • B.

      FASB Interpretations

    • C.

      FASB Staff Position

    • D.

      IASB Rulings

    Correct Answer(s)
    A. Statements of Financial Accounting Standards (SFAC)
    B. FASB Interpretations
    C. FASB Staff Position
    Explanation
    Prior to the codification, GAAP was issued via several pronouncements, including Statements of Financial Accounting Standards (SFAC), FASB Interpretations, and FASB Staff Position. IASB Rulings were not part of the pronouncements issued prior to the codification.

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  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 15, 2014
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    Navamaestro
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