I -Using the ASC to provide conclusions on a variety of short accounting research questions.

For each of the following settings, you are asked to fully answer the following accounting related questions using the ASC. In your responses,

1) state the research question

2) provide the full ASC cite (down to the paragraph level) needed to answer the question using full sentences to describe the reference and

3) include a direct quote with the ASC content. Use the example below as a guide.

o Example scenario: Should inventory be measured initially at its market value or at cost?

o Example answer: Research question: Should inventory be measured initially at its market value or at cost?

ASC 330-10-30-1 states the following with respect to the initial measurement of inventory: "The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations."

Scenarios:

1. Should raw materials inventory be classified within current assets on the balance sheet?

2. When should an entity record the effects of changes in tax laws and rates in recording its income taxes?

3. What are the criteria for determining whether a good or service that is promised to a customer is distinct? (i.e., in a revenue-generating transaction with a customer)?

4. What is the objective of the initial measurement of a guarantee liability?

5. a. Is SEC guidance considered authoritative GAAP?

b. Is all SEC guidance housed within the Codification?