1. FASB ASC {Codification reference}, for example:

a. TopicsFASB ASC Topic 310 [, Receivables]

b. SubtopicsFASB ASC Subtopic 310-10 [, Receivables Overall]

c. SectionsFASB ASC Section 310-10-15 [, Receivables Overall Scope]

d. ParagraphFASB ASC paragraph 310-10-15-2

e. SubparagraphFASB ASC subparagraph 310-10-15-2(a). Source: FAS: ASC Info (2010)

Highlight the best answer for each question (1 point per question; 15 points total)

1.1. What section of the ASC are disclosure requirements always contained in?

a. Section 50

b. Section 45

c. Section 20

d. Section S99

e. None of the above

1.2. Under the former GAAP hierarchy, accounting textbooks were considered level 4 authoritative literature. What ASC section tells where accounting textbooks stand in the new GAAP hierarchy?

a. ASC 105-10-05-3

b. ASC 505-10-65-2

c. ASC 105-10-S99-1

d. ASC 505-30-50-2

e. None of the above

1.3. Where does the ASC state how many years of comparative financial statements are required under current GAAP?

a. ASC 505-10-65-1

b. ASC 205-10-45-2

c. ASC 260-10-65-3

d. ASC 105-10-50-1

e. None of the above

1.4. What section of the ASC always describes the overview and background requirements are disclosure requirements always contained in?

a. Section 20

b. Section 45

c. Section 05

d. Section S99

e. None of the above

1.5. Where does the ASC state whether the provisions of the ASC can be ignored if the item is immaterial?

a. ASC 105-10-65-1

b. ASC 105-10-05-6

c. ASC 260-10-65-3

d. ASC 105-10-50-1

e. None of the above

1.6. Where is FASB Statement No. 141R codified in the ASC?

a. ASC 805-30-35

b. ASC 810-30-25

c. ASC 805-20-15

d. ASC 805-10-10

e. None of the above

1.7. Where in the ASC Factors can you find the factors used to determine if the contingent consideration is part of an acquisition exchange or not?

a. ASC 805-20-25-15 and 16

b. ASC 810-10-25-1 and 2

c. ASC 805-10-55-24 and 25

d. ASC 460-10-55-20 and 21

e. None of the above

1.8. What ASC citation shows whether current GAAP requires information on the Income Statement to be reported in chronological order with the most recent year listed first, or if the reverse order is acceptable as well?

a. ASC 210-20-S99-1

b. ASC 205-15-S99-2

c. ASC 205-15-S99-6

d. ASC 205-10-S99-9

e. None of the above

1.9. How does the ASC answer question 10, above? (Highlight only 1 response)

a. Yes, information on the Income Statement must be reported in chronological order

b. No, information on the Income Statement doesnt have to be reported in chronological order

c. None of the above

1.10. In the 1990s, the pooling of interest method was a preferred method of accounting for consolidations by many managers because of the creation of instant earnings if the acquisition occurred late in the year. Can the firms that used pooling of interest in the 1990s continue to use the method for those earlier consolidations, or were they required to adopt the new standards for previous business combinations retroactively? (Highlight only 1 response)

a. Pooling of interest method is grandfathered

b. Must adopt acquisition method retroactively

c. None of the above

1.11. What is the citation for the section of the ASC that provides the answer to question #12?

a. ASC 205-10-45-2(a)

b. ASC 105-10-70-2(a)

c. ASC 105-40-25-6(b)

d. ASC 110-20-45-2(a)

e. None of the above

1.12. What ASC section is always the section for grandfathered guidance?

a. Section 10

b. Section 70

c. Section 15

d. Section S24

e. None of the above

1.13. You are trying to distinguish between an asset acquisition and the acquisition of a business. Below the search box on the ASC home page, you click on Advanced Search, enter Asset Acquisition in the text/keyword box, and click on Exact Phrase. How many results are returned?

a. 12

b. 14

c. 16

d. 35

e. None of the above

1.14. Following up on question 14, above, you narrow the search by clicking on Business Combinations in the Narrow by Related Term section. Then, you notice that the section on Related Issues seems to be where acquisition of assets, rather than a business, is located. Which citation states that the guidance in the Acquisition of Assets Rather Than a Business subsection addresses transactions in which the assets acquired and liabilities assumed do not constitute a business. A business is considered an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants.

a. ASC 805-50-05-3

b. ASC 810-50-10-2

c. ASC 805-35-05-3

d. ASC 810-25-15-1

e. None of the above

1.15. GAAP requires that firms test for goodwill impairment on an annual basis. One reporting unit performs the impairment test during January while a second reporting unit performs the impairment test during July. You want to know: If the firm reports annual results on a calendar basis, is this acceptable under GAAP? You use the ASC drop-down menus under the Asset general topic on the homepage and choose 350 Intangibles-Goodwill and other; then under the second drop-down menu, you choose 20-Goodwill. You expand the sections. Since nothing is listed related to the search, you go to the scope section (805-10-15), but FASB ASC subparagraph 805-10-15-4(b) tells you the scope of section 10 does not cover asset acquisitions. So, you click on subsequent measurement and click on expand topics. One of the topics is when to test goodwill impairment. What is the citation that tells you that different reporting units may be tested for impairment at different times?

a. ASC 325-20-35-28

b. ASC 350-20-35-28

c. ASC 805-10-15-4b

d. ASC 350-10-20-15

e. None of the above